Supply Cap

The maximum number of coins that will ever exist for a cryptocurrency.

A supply cap (also called max supply) is the hard limit on the total number of coins or tokens that will ever exist for a cryptocurrency. Once the supply cap is reached, no new tokens can be created.

Notable Supply Caps

Bitcoin: 21 million BTC — the most famous supply cap in crypto.

Litecoin: 84 million LTC.

BNB: 200 million (being reduced to 100 million through quarterly burns).

Cardano: 45 billion ADA.

No Supply Cap

Some cryptocurrencies have no maximum supply. Ethereum has no hard cap but has become periodically deflationary through fee burning. Dogecoin has no supply cap — 10,000 DOGE are minted per minute indefinitely.

Why Supply Caps Matter

A fixed supply cap creates scarcity, which is a core value proposition for assets like Bitcoin ("digital gold"). When evaluating a project, compare the supply cap with the current circulating supply to understand potential inflation. A project with only 10% of tokens in circulation has significant future dilution ahead.

Frequently Asked Questions

What is a supply cap?

A supply cap is the maximum number of tokens that will ever exist for a cryptocurrency. Bitcoin's 21 million cap is the most famous example. Once reached, no new tokens can be created, enforcing permanent scarcity.

Do all cryptocurrencies have a supply cap?

No. Ethereum has no hard cap (but can be deflationary through fee burning). Dogecoin has no cap — 10,000 DOGE are created per minute forever. Whether a cap exists and at what level significantly affects a token's long-term value proposition.

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