Is total supply important in crypto?

Total supply refers to the number of coins or tokens that currently exists and are either in circulation or locked somehow. It is the sum of coins that were already mined (or issued) minus the total of coins that were burned or destroyed.

Total supply can be an important indicator of a cryptocurrency’s profitability and whether investors should invest in a virtual currency. For example, a large gap between circulating supply and the total supply can have implications for future profitability.

The maximum supply of a cryptocurrency refers to the maximum number of coins or tokens that will be ever created . This means that once the maximum supply is reached, there won’t be any new coins mined, minted or produced in any other way.