In plain English
What Maximum supply means
Maximum supply is a ceiling on issuance. In capped systems, the protocol limits how many units can ever exist, including units already issued and units still to be minted later. Some cryptocurrencies do not have a maximum supply at all, so the metric is undefined rather than infinite in a practical sense.
Why it matters
Maximum supply helps users compare scarcity models across assets. It is often used in fully diluted valuation estimates, but that only works when the protocol’s issuance rules are known and reliable.
Example
If a coin has a maximum supply of 21 million and 19.7 million are already in circulation, then 1.3 million more can still be created under the protocol’s issuance schedule. This is a simplified example that ignores lost coins.
Quick answers
Common questions
Can maximum supply be unlimited?+
Some assets have no predefined cap, so a maximum supply is not set. In that case, new units may continue to be issued under the protocol rules.
Is maximum supply the same as total supply?+
No. Total supply counts units already created minus burns; maximum supply is the eventual cap on how many units may ever exist.
Sources