Elastic supply refers to the ability of a cryptocurrency’s supply to adjust in response to market demand. Unlike fixed supply assets, such as Bitcoin, which have a set maximum number of coins, elastic supply cryptocurrencies can increase or decrease their total circulating amount.When demand for the currency rises, the system can create more coins, helping to maintain affordability and prevent massive price spikes. Conversely, if the demand drops, the supply can be reduced, which can help stabilize the currency’s value and enhance long-term endurance.This flexible approach can aid in price stability and encourage broader usage. However, it can also lead to concerns about inflation and the potential for devaluation if too many coins are generated without corresponding demand.Overall, elastic supply may provide benefits for adapting to market conditions, but it also raises questions around trust and the management of the currency. This model aims to create a balanced ecosystem where the currency can thrive regardless of the fluctuations in user interest.