Rebase refers to an adjustment in the supply of a cryptocurrency to stabilize its value. It typically involves increasing or decreasing the total supply of tokens in circulation, affecting each holder’s balance.When a rebase occurs, the token’s price can be influenced by this change in supply. For instance, if a token’s value is too low, the supply might increase to encourage purchasing. Conversely, if a token is high in value, the supply might decrease to prevent inflation.Rebases can happen at predetermined intervals, like daily or weekly, or be triggered by specific market conditions. This mechanism aims to maintain the token’s price around a target value, often pegged to a fiat currency or another digital asset.However, rebasing can create volatility and confusion for investors. Since holders’ balances can change without any transactions, understanding the dynamics of supply changes is essential for effective trading and investment.