Maximum Supply

What Is Maximum Supply?

The maximum supply is an ideal assessment of the greatest number of coins that are going to ever exist in the cryptocurrency's existence. No new coins or even tokens will be issued or mined once the maximum supply has been depleted. Most cryptocurrencies have a limited quantity.

An Example of Maximum Supply

Typically, the maximum supply is deduced by the constraints outlined by each digital asset's underlying protocol. For example, the maximum supply for Bitcoin is set at 21 million coins. On the other hand, ether is an example of a cryptocurrency with no specified fixed supply. 

Maximum supply is not the same as total supply. The maximum supply is computed by adding the total number of coins mined to those yet to be mined. Total supply, on the other hand, is computed by subtracting the number of coins lost from the total amount mined.

As far as the difference between Maximum and Total supply is concerned, the maximum supply estimate includes all coins that have already been produced (or mined) as well as coins that have yet to be released (in the future). Whereas the total supply includes only coins that have previously been produced, minus those that have been destroyed, such as in coin burn events.