In the dynamic world of cryptocurrencies, assets with limited supplies hold a unique appeal due to their scarcity and potential for value appreciation. In this blog, we talk about the best crypto with limited supply. These include Bitcoin, Binance Coin, Cardano, Chainlink, XRP, Avalanche, and Litecoin. We will learn why these cryptocurrencies are good to invest in because there’s only a limited amount of them, which could make them more valuable over time.
Key takeaways
- Scarcity Matters: Cryptos like Bitcoin, with a fixed supply, may increase in value over time due to limited availability.
- Supply vs. Demand: A cryptocurrency’s long-term value can be influenced by its maximum supply limit, affecting its scarcity and potential demand.
- Market Cap Insight: High market capitalization can indicate a strong market presence, suggesting stability and growth potential, but it’s important to also consider supply dynamics.
- Research is Key: Always assess the supply limit and market cap alongside other factors to gauge a cryptocurrency’s long-term investment potential.
Best crypto with limited supply in 2024
| Coin Name | Max Supply | Market Cap | Growth rate approx in 1 year (2023) |
| Bitcoin (BTC) | 21 million | $458 billion | 156% |
| Binance Coin (BNB) | 200 million | $52 billion | 28.71% |
| Cardano (ADA) | 45 billion | $18 billion | 140% |
| Chainlink (LINK) | 1 billion | $11 billion | 170.28% |
| XRP (XRP) | 100 billion | $27 billion | 27.19% |
| Avalanche (AVAX) | 720 million | $12 billion | 245% |
| Litecoin (LTC) | 84 million | $5 billion | 14.25% |
Sources :
Market Cap & max supply is as of 31 Jan 2024, for live market crypto market cap , supply and price follow this link
Now, let’s understand why the coins listed above in the table are seen as good crypto tokens with limited supply.
Bitcoin (BTC): The Gold Standard of Crypto
Max Supply: 21,000,000
Market Cap: $458 billion
Growth Rate in 1 Year (2023): 156%
Bitcoin, often referred to as digital gold, is the original cryptocurrency and remains the most well-known and valuable. Its capped supply of 21 million coins is a deliberate design to introduce scarcity, making it inflation-resistant. The impressive 156% growth rate in 2023 underscores its resilience and potential for substantial returns. Investing in Bitcoin is not just about holding a digital currency; it’s about owning a piece of the foundational technology of the crypto world.
Binance Coin (BNB): The Utility Token Powerhouse
Max Supply: 200 million
Market Cap: $52 billion
Growth Rate in 1 Year (2023): 28.71%
Binance Coin, the native cryptocurrency of the Binance exchange, has a practical use case that extends beyond just being a digital asset. It offers transaction fee discounts on the Binance platform, and its limited supply of 200 million coins adds to its value proposition. Although its growth rate of 28.71% in 2023 might seem modest compared to others, BNB’s stability and utility within the expanding Binance ecosystem make it a compelling investment choice.
Cardano (ADA): The Research-Driven Blockchain
Max Supply: 45 billion
Market Cap: $18 billion
Growth Rate in 1 Year (2023): 140%
Cardano stands out for its rigorous scientific approach to development and its emphasis on security and sustainability. With a capped supply of 45 billion ADA, it promises scarcity amidst demand. The 140% growth rate in 2023 reflects its increasing adoption and the successful implementation of its roadmaps, such as smart contracts functionality. Investors looking for a blend of innovation, scalability, and environmental consciousness will find Cardano an attractive option.
Chainlink (LINK): The Bridge Between Real World and Blockchain
Max Supply: 1,000,000,000
Market Cap: $11 billion
Growth Rate in 1 Year (2023): 170.28%
Chainlink’s unique proposition lies in its ability to securely connect real-world data with blockchains through oracles. This capability is fundamental for the execution of smart contracts based on external data and events. With a maximum supply of 1 billion LINK and a staggering growth rate of 170.28% in 2023, Chainlink is poised for continued growth as it addresses a critical need in the blockchain ecosystem.
XRP (XRP): The Fast and Efficient Payment Solution
Max Supply: 100 billion
Market Cap: $27 billion
Growth Rate in 1 Year (2023): 27.19%
XRP aims to revolutionize international money transfers by offering fast, low-cost, and efficient transactions. With a substantial total supply of 100 billion, XRP’s design is for high volume and swift settlements. Its growth rate of 27.19% in 2023 indicates solid performance and resilience. XRP’s appeal lies in its utility within the Ripple network, facilitating real-time global payments for banks and financial institutions. Investors are drawn to XRP for its potential to become a standard in the finance industry.
Avalanche (AVAX): The Scalable Blockchain Platform
Max Supply: 720 million
Market Cap: $12 billion
Growth Rate in 1 Year (2023): 245%
Avalanche stands out for its exceptional scalability, offering near-instant transaction finality. With a capped supply of 720 million AVAX, it presents a deflationary model that could enhance its value as the network grows. The impressive 245% growth rate in 2023 showcases its rapidly increasing adoption and the potential for substantial returns. Avalanche’s technology enables decentralized applications and custom blockchain networks, making it a prime choice for developers and investors alike.
Litecoin (LTC): The Silver to Bitcoin’s Gold
Max Supply: 84 million
Market Cap: $5 billion
Growth Rate in 1 Year (2023): 14.25%
Litecoin, often referred to as the silver to Bitcoin’s gold, offers a compelling investment opportunity with its limited supply of 84 million coins. It provides faster transaction times and lower fees compared to Bitcoin, making it an attractive option for everyday transactions. Despite a more modest growth rate of 14.25% in 2023, Litecoin’s established position in the market and its continuous development make it a stable and reliable choice for those looking to diversify into cryptocurrencies with proven track records.
Why are coins with a limited supply often seen as good investments?
A cap on supply is seen as a good investment for several reasons related to supply and demand dynamics, perceived value, and economic principles:
Scarcity Drives Demand
A cornerstone of economic theory is that scarcity can increase demand. When something is rare and highly sought after, its value can go up. Cryptocurrencies with a fixed supply limit, like Bitcoin, are designed to mimic the scarcity of precious metals such as gold. This scarcity can make these coins more desirable to investors, potentially driving up their price over time.
Inflation Resistance
Traditional fiat currencies can lose value over time due to inflation, which occurs when a government issues more money. Since cryptocurrencies with a fixed supply cannot increase their supply beyond a certain limit, they are naturally resistant to inflation. This characteristic makes them attractive as a long-term store of value, similar to gold and other precious metals.
Speculative Value
The knowledge that no more coins will be created can lead to speculative investment, as investors may anticipate future price increases as supply tightens. This speculative value can contribute to the long-term appreciation of the cryptocurrency.
Increased Investor Confidence
A transparent, fixed supply can increase investor confidence because it provides predictability in the market. Investors can have a clear understanding of the total supply and how many coins are currently in circulation, which helps in assessing the potential scarcity and value of the asset.
Psychological Factors
The perception of exclusivity and limited availability can make these cryptocurrencies more appealing to certain investors. Owning a piece of a finite resource can be seen as more valuable, further driving demand.
An overview : Is limited supply of crypto good or bad?
A limited supply of a cryptocurrency is often seen as beneficial because it creates scarcity, which can increase demand and drive up the asset’s value over time, similar to precious metals like gold. This inherent scarcity makes such cryptocurrencies resistant to inflation, enhancing their appeal as a long-term store of value. The fixed supply also boosts investor confidence by providing market predictability and fostering speculative investment, which can contribute to the asset’s long-term appreciation.
However, a capped supply can also introduce challenges, such as potential market manipulation, especially if a significant portion of the supply is concentrated among a few holders. This scarcity can lead to high volatility, with prices susceptible to sharp rises and falls, and may result in accessibility issues for average investors. Additionally, the speculative nature driven by limited supply can inflate bubbles, risking sudden and significant losses in value.
Where to buy crypto in India?
Explore Mudrex. An Indian crypto exchange with 350+ coins listed on its platform. Mudrex is registered with the Financial Intelligence Unit of India and is 100% compliant to Indian legal regulations. With 1 million plus users, Mudrex provides an easy to use user interface.
Conclusion
Investing in these cryptocurrencies allows investors to leverage the potential for appreciating value due to their capped supplies while engaging with diverse technological advancements and use cases.
In summary, cryptocurrencies with a limited supply represent a multifaceted investment avenue, offering a mix of scarcity, utility, and innovation. As the digital currency landscape evolves, these coins—each with its vision and technological contribution—offer a compelling case for inclusion in a well-rounded investment portfolio.
