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Understanding Token Supply in Crypto
When we talk about a cryptocurrency’s supply, we often refer to three key metrics: Total Supply, Max Supply, and Circulating Supply.
Total Supply is the total amount of tokens that exist, including those that are locked or not in circulation.
Max Supply is the maximum number of tokens that will ever exist for a particular cryptocurrency. Bitcoin, for example, has a max supply of 21 million.
Circulating Supply refers to the number of tokens that are currently available and in the hands of the public.
Understanding these metrics is key to evaluating the scarcity and potential value growth of a crypto asset.
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