Maximum Supply
The maximum supply of a cryptocurrency refers to the total number of coins or tokens that will ever be created or mined. This figure is predetermined by the cryptocurrency's protocol or founding documents and is critical to its economic model. Cryptocurrencies have different maximum supplies, which can significantly affect their price, scarcity, and investment potential.
Here are some examples:
Bitcoin (BTC): Bitcoin has a maximum supply of 21 million coins, established by its creator to mimic the scarcity and deflationary characteristics of precious metals like gold.
Ethereum (ETH): Ethereum originally didn't have a hard cap on its total supply. However, with recent updates, its issuance has become more dynamic and can become deflationary.
Ripple (XRP): Ripple has a total supply of 100 billion XRP tokens, all created at launch.
Litecoin (LTC): Litecoin has a maximum supply of 84 million coins, making it more accessible for daily transactions.
Cardano (ADA): Cardano has a capped maximum supply of 45 billion ADA, providing a sustainable and balanced economic model.
Binance Coin (BNB): BNB originally had a total supply of 200 million tokens, with plans to reduce this to 100 million through quarterly burns.
Chainlink (LINK): Chainlink has a total supply of 1 billion LINK tokens, distributed to fund development and incentivize the ecosystem.
Edelcoin (EDLC): Its total supply is 5,8 billion EDLC.Edelcoin reached its all-time high of USD 1.06 on March 8, 2024.
Maximum supply is crucial in crypto, influencing a cryptocurrency's inflation rate, investment appeal, and market dynamics. Coins with a fixed or capped supply, like Bitcoin and Edelcoin, can become scarcer over time, potentially increasing in value if demand grows. Conversely, cryptocurrencies without a hard cap might face inflationary pressures if new coins are introduced at a rate exceeding demand.