Token Supply
The quantitative metrics describing a token's availability: Circulating Supply is the number of tokens currently available in the market; Total Supply is all tokens that have been created minus any that have been burned; Max Supply is the absolute maximum number of tokens that can ever exist (if capped). These metrics directly impact market capitalization calculations and price analysis.
“Bitcoin has a circulating supply of ~19.5 million, a max supply of 21 million (hard cap), and about 1.5 million BTC yet to be mined. Ethereum has no max supply but has become periodically deflationary since EIP-1559.”
Market Capitalization
The total value of a cryptocurrency, calculated by multiplying the current price per coin by the circulating supply. Market cap is the primary metric for ranking cryptocurrencies by size and is used to categorize assets as large-cap (>$10B), mid-cap ($1B-$10B), or small-cap (<$1B).
Tokenomics
The economic model and design of a cryptocurrency token, encompassing its supply schedule, distribution plan, utility within the ecosystem, value accrual mechanisms, inflation/deflation dynamics, and incentive structures. Well-designed tokenomics align incentives between all stakeholders and sustain long-term value. Poorly designed tokenomics can lead to unsustainable inflation or wealth concentration.
Token Burn
The permanent removal of tokens from circulation by sending them to an inaccessible wallet address (a 'burn address'). Token burns reduce total supply, which can create deflationary pressure on the token's price if demand remains constant. Burns can be one-time events, part of regular protocol operations (like Ethereum's EIP-1559 base fee burn), or buyback-and-burn programs.
Halving
A pre-programmed event that cuts the block reward for mining new blocks in half, reducing the rate at which new coins are created. Bitcoin's halving occurs every 210,000 blocks (approximately every 4 years) and is a core mechanism for enforcing its deflationary supply schedule. Halvings are historically correlated with subsequent bull markets due to reduced sell pressure from miners.