How does the total supply of AVAX impact its market value?

How does the total supply of AVAX impact its market value?

Blog Article

The total supply of AVAX is capped at 720 million tokens, with a portion of the supply being burned as part of Avalanche’s deflationary mechanism. This limited supply, combined with rising demand, has the potential to increase the value of AVAX over time. As the supply diminishes through burns, and as more people use AVAX for staking, fees, and other activities within the network, the AVAX price could see upward pressure due to the scarcity effect.