What’s the difference between circulating supply, total supply, and maximum supply?
Circulating supply refers to the number of tokens currently circulating on the market. It excludes tokens that are still locked. Since Ethereum’s London upgrade in 2021, the base fee of each transaction has been burned, so ETH’s total supply sometimes increases and sometimes decreases.
An uncapped total supply doesn’t necessarily mean high inflation. What matters is how many new tokens are actually issued each year and whether there’s a burn mechanism.
$BTC has a hard-capped maximum supply of 21 million tokens, and the amount already mined is getting closer and closer to this limit.
Circulating supply refers to the number of tokens currently circulating on the market. It excludes tokens that are still locked. Since Ethereum’s London upgrade in 2021, the base fee of each transaction has been burned, so ETH’s total supply sometimes increases and sometimes decreases.
An uncapped total supply doesn’t necessarily mean high inflation. What matters is how many new tokens are actually issued each year and whether there’s a burn mechanism.
$BTC has a hard-capped maximum supply of 21 million tokens, and the amount already mined is getting closer and closer to this limit.
