March 15 2024

Cryptocurrencies With a Limited Supply to Invest In

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Byline: Hannah Parker

In the crypto-verse, the rarer an asset (a token) is, the more valuable it is, even in price value. There are two reasons why a currency would have a limited supply. The first is the crypto having a set or fixed market cap (market capitalization refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares) or a currency being within its early stages of development yet also presenting high growth opportunities. 

Why are low-supply currencies profitable?

Many cryptocurrencies have an infinite supply of coins that can be in circulation and are thus uncapped in supply. Therefore, those with a finite and fixed supply set are rare, creating “value” for the coins outside of their functionality that urges investors to buy them. At the same time, they are still available, consequently leading to the exponential growth in the price-value of the low-supply cryptocurrencies. It is all a cycle and a matter of supply and demand with a cause and effect. In essence, the rarer the coin, the steeper the increase in demand which subsequently leads to an increase in the value.

Bitcode Method App, a popular trading platform and bot, writes about finite and infinite supply cryptocurrencies and further writes guides, reviews, and gives current updates on the currencies to aid crypto investors in making informed financial decisions. 

Top 7 cryptocurrencies with a low supply:

1. Bitcoin

Bitcoin is the first ever cryptocurrency to be launched, making it the father of all cryptocurrencies that set the blueprint for all existing and upcoming cryptocurrencies. Bitcoin tokens are limited to a supply of 21 million, meaning no tokens above this number can ever be created or circulated. As the leading currency, Bitcoin has been viable and relatively stable for years, though it has seasons where it massively increases in demand and then declines in demand. Of all currencies, Bitcoin is the most secure coin to invest in, with assured returns in value.

2. Litecoin

Litecoin, a currency that functions as a run-off of Bitcoin, has the same principle functions as Bitcoin but was designed to be used for cheaper transactions and to be more efficient for daily use. The currency has a market cap of 84 million tokens, with over 75% currently in circulation. This fixed supply means mining block rewards will be smaller in the long run.

3. Cardano

Cardano is an ecosystem that allows other developers to create tokens, decentralized applications, or other use cases for scalable blockchain networks. Cardano can process more than 250 transactions per second (TPS), and this number is expected to go up as they develop further and upgrade the chain to scale better, making it better and more efficient than Bitcoin and Ethereum, which are currently dominating the crypto markets as it is much faster when coming to processing transactions. Cardano has one of the highest maximum supply rates, which is set at 45 billion. Due to its fast processing function and ongoing developments, the currency is expected to increase in value.

4. Chainlink

Chainlink, an Ethereum-based token, also functions as a decentralized network that facilitates secure communications between Ethereum projects and various off-chain data. The token has a maximum supply limit of 1 billion and a value of $30 per unit, which can be used to create and run smart contracts.

5. Stellar (XLM)

Stellar is a token and a decentralized protocol on open-source code to transfer digital currency to fiat money domestically and across borders. The token has a maximum supply limit of 50 billion and is valued at around $.40 per unit. Most importantly, the token can be used for payment settlement across borders and for personal transactions.

6. Avalanche (AVAX)

Avalanche (AVAX) is a cryptocurrency and blockchain platform that rivals Ethereum. AVAX is the native token of the Avalanche blockchain, and it uses smart contracts to support various blockchain projects; furthermore, transactions are processed near-instantly on the platform. The maximum number of AVAX coins that can be supplied to the market stands around 720 million, and 391 million were found to be in supply in October 2021. The total market cap of AVAX is approximately USD 14.3 billion.

7. Ripple (XRP)

Ripple is a blockchain-based digital payment network with a native coin, XRP. the core function of this token is to facilitate faster and cheaper financial transfers across the globe. The coin market cap is standing at $48 billion with a maximum supply of 100 million coins.

Although limited-supply cryptocurrencies are profitable, it does not mean that those with an infinite supply of tokens that can be created and circulated are not valuable or profitable. For instance, Ethereum has an endless supply of tokens. Yet, it is the second-largest cryptocurrency dominating the crypto markets with excellent chances of superseding the leading cryptocurrency over the years due to its increase in popularity and demand. Moreover, the rarity of a cryptocurrency does not make it more valuable. The core functions it serves and its efficiency, including how the technology can better benefit users or investors, are the most important reasons to look out for it. This includes if there is room for expansion or development over the years, which would make the currency and the technology that supports it more sustainable and, consequently, more in demand. Thus, individuals must conduct their research and make decisions regarding their investments while considering the future, the sustainability of what they want to invest in, and other factors.


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