What is the difference between total supply and Max supply in crypto?

In the realm of cryptocurrency, the concept of total supply holds significant importance. It refers to the definitive number of coins that will ever be in circulation, marking a fixed limit on the coin's availability.

This figure is typically established at the inception of the coin, with its purpose being to maintain scarcity and stability in the market. Once set, the total supply cannot be altered, ensuring predictability and transparency for investors.

In contrast, the max supply represents the upper boundary of how many coins can potentially exist within the system. Unlike the total supply, the max supply may vary based on the specific protocol or rules governing the coin.

The flexibility in the max supply allows for adaptability and potential growth, as developers can adjust the limit in response to changing market conditions or technological advancements.

Understanding the distinction between total supply and max supply is crucial for investors, as it informs their decision-making process and risk assessment. A low total supply may indicate a higher degree of scarcity and potential appreciation, while a dynamic max supply could signal greater potential for expansion.