How does AVAX's capped supply affect its price?

How does AVAX's capped supply affect its price?

Blog Article

AVAX has a capped supply of 720 million tokens, making it a deflationary asset over time. A fixed supply means that once all tokens are in circulation, no more will be created, which could drive up demand, particularly if the Avalanche ecosystem continues to grow. This scarcity can lead to price appreciation as demand for AVAX increases, similar to how Bitcoin’s limited supply influences its price. However, market conditions, adoption rates, and network developments also play critical roles. To understand how scarcity is impacting its value, keeping tabs on the current AVAX price is crucial for investors and traders alike.