Maximum supply refers to the total number of coins or tokens that will ever exist for a specific cryptocurrency. This limit is set by the creators and serves as a key factor influencing the asset’s scarcity and value.A fixed maximum supply can create a sense of urgency among buyers, as the asset becomes available in limited quantities. For example, Bitcoin has a maximum supply of 21 million coins. Once this cap is reached, no new Bitcoins will be created. In contrast, some cryptocurrencies can have a dynamic supply, meaning new coins may be minted or burned based on various factors, such as demand or network activity. Understanding maximum supply is crucial for investors, as it impacts potential price movements and overall market dynamics. A lower maximum supply can lead to higher price volatility, while a higher supply may result in more stable prices.