03 Jun 2021 10:51 AM +00:00

Does Cardano have a fixed supply?

Alongside the likes of Dogecoin, interest in Cardano has surged in 2021. The Cardano blockchain and its native currency, ADA, uses a proof-of-stake (PoS) algorithm, gaining a reputation for being a more environmentally-friendly cryptocurrency than the likes of Bitcoin, for example.

However, while Cardano's energy consumption is different to that of Bitcoin, it does share a few traits with the iconic digital currency.

Here's all you need to know about the total supply of Cardano, and what this means for the cryptocurrency.

Cardano Total Supply

As of June 2021, there are over 31,948,000,000 ADA in circulation (via CoinMarketCap). This puts Cardano at 12th in the list of cryptocurrencies with the most coins, below the likes of Dogecoin, SHIBA INU, BitTorrent, and XRP.

However, unlike Dogecoin and Ethereum, Cardano has a fixed supply. Cardano has a max supply of 45,000,000,000 ADA. This meaning just over two-thirds of the maximum Cardano supply is circulating. Such caps are regarded as means to reduce the inflation rates of cryptocurrencies over time.

Of course, like many decentralised currencies, the ADA community could vote to remove or amend this maximum supply.

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At its current price of $1.88, this means Cardano has a Fully Diluted Market Cap of over $84,800,000,000 at the time of writing. However, similar to how Bitcoin is not expected to reach its cap until 2140, Cardano's will not hit its cap for a long time either, due to the setup of its staking rewards.

Cardano's founder, Charles Hoskinson (also the co-founder of Ethereum), discussed the maximum supply of Cardano compared to Bitcoin's cap of 21,000,000 BTC in a 2018 AMA.

"What's so extraordinary to me is the arbitrariness of this decision and how people just don't seem to comprehend we're playing with decimal points," Hoskinson said.

"It has no effect or bearing on the price."

READ MORE: How many cryptocurrencies are there in 2021?

[Featured Photo by Executium on Unsplash]