In plain English
What Maximum supply means
A maximum supply answers a different question from how many tokens trade now. Some protocols impose a hard issuance ceiling; others issue new units indefinitely or allow supply rules to be changed through governance or software updates. Data providers may report a maximum supply only when they can identify a meaningful cap from the project’s documented design.
Why it matters
Maximum supply is used with price to calculate fully diluted valuation, a hypothetical value if the entire maximum supply were valued at today’s price. Comparing maximum supply with circulating supply can show potential dilution from future issuance or unlocks. It does not establish fair value, demand, or a future token price.
Example
Suppose a token has a maximum supply of 1 billion units, a circulating supply of 250 million, and a price of $0.80. Its circulating market capitalization is $200 million, while its fully diluted valuation is $800 million. The $600 million difference reflects units not currently included in circulating supply, using simplified arithmetic.
Quick answers
Common questions
Is maximum supply the same as fully diluted valuation?+
No. Maximum supply is a quantity of units. Fully diluted valuation is a price-based calculation, commonly maximum supply multiplied by the current price. It is a comparison metric rather than the amount currently invested in the asset.
Do all cryptocurrencies have a maximum supply?+
No. Some cryptocurrencies have no predefined maximum supply, and others have supply policies that can change. In those cases, a maximum-supply field may be blank, unlimited, or based on a provider’s stated methodology.
Sources