Max Supply is a term used to describe the total amount of any given cryptocurrency that will ever be created. This number is usually determined before the currency becomes available for trading and it cannot be changed once set. The max supply of a coin can vary depending on the type of cryptocurrency and its underlying technology, but typically ranges from tens to hundreds of millions or even billions of units.
For example, Bitcoin (BTC) has an upper limit or max supply set at 21 million coins which means no more than this amount will ever exist in circulation. On the other hand, Ethereum (ETH) does not have a hard cap on its total supply and could potentially continue producing new coins indefinitely. The current circulating supply for ETH stands at around 115 million with no end in sight yet.
The concept behind max supply helps keep cryptocurrencies scarce by limiting their availability so that demand remains high and prices remain stable over time. It also allows developers to have better control over inflation rates as compared to traditional fiat currencies which are prone to suffer from hyperinflation if mismanaged by central banks or governments . Finally, having an established maximum cap also creates certainty among investors who know exactly how much they are dealing with when investing in a particular digital asset without worrying about dilution caused by additional tokens being issued down the line .
