One of the major advantages of Bitcoin over other assets is that there will merely e'er be 21 million coins and we can precisely predict the number of coins that will be in circulation with high certainty at any signal in time.
Because of the cryptocurrency’due south scarcity, each millionaire in the globe cannot ain even 1 Bitcoin, and the ascension demand against a properties of a finite supply has contributed to the phenomenal price performance since 2010.
Since the inception of Bitcoin, thousands of other cryptocurrencies take been created. Many of these altcoins are nowhere near as scarce as Bitcoin, with some coins having a massive number of circulating units of over i billion. Supply dynamics are an important consideration when investing in a coin or token, equally coins with a lower supply require smaller increases in demand for higher prices as compared to coins with a larger supply.
In this article, we’ll summarize the superlative 7 cryptocurrencies with a limited supply, accept a network value of at least $250 million and
a lower circulating supply (or maximum supply) than Bitcoin.
All figures were obtained from CoinGecko.
1. Numeraire (NMR)
- Circulating supply: v.77 meg
- Max supply: 11 one thousand thousand
- Current Price: $43.09
Numeraire is a decentralised, software-powered hedge fund built on the blockchain, which crowdsources predictions from information scientists all over the world to trade the stock market place.
The native cryptocurrency is NMR which can be staked and then that authentic predictions can get rewarded. If the overall hedge fund performs well, the returns are distributed via NMR to reward participants to create better prediction models and improve the operation even more.
The token was launched on Ethereum in February 2017 and initially had the same supply cap as Bitcoin (21 1000000). Notwithstanding, in June 2019, the supply cap was reduced to 11 million every bit part of a network upgrade. There was no initial coin offering or token sale as part of NMR's distribution, but 1 meg tokens were allocated to 12,000 data scientists based on their participation in Numerai tournaments.
- Circulating supply: 10.29 million
- Total supply: 18.92 million
- Electric current Price: $239.13
Photograph past Executium on Unsplash
Dash is a cryptocurrency aims to exist digital greenbacks and while its codebase was inherited from Bitcoin, it differs in several ways.
- Dash introduced
to facilitate faster transactions and
which allows users to make more than private transactions using coin mixing techniques.
- Nuance introduced the concept of masternodes, which comport out the InstantSend and PrivateSend functions. Those running a masternode tin can earn a return from holding 1,000 Dash.
- DASH's maximum supply is slightly lower than Bitcoin's, at but under 19 meg coins.
- The block advantage for DASH is reduced by vii.xiv% every 210,240 blocks (approximately 1 year), instead of past 50% every four years, as with Bitcoin.
Another interesting feature of DASH is that information technology is the longest running Decentralised Autonomous Organisation (DAO), where 10% of the cake rewards are allocated to a treasury to fund proposals to improve the Dash network.
- Circulating supply: eight.98 million
- Max supply: 10 million
- Current Price: $303.99
Kusama is an contained, experimental version of the Polkadot network, where official updates are tested on the Kusama network first. The native token KSM has a circulating supply of merely under 9 million coins and is used to power computation, allow holders to participate in securing the network and vote on upgrade proposals.
KSM tokens are locked in parachain slot auctions to create new custom blockchains using Kusama as a base layer. From the first 5 parachain auctions, more than 1.3 million KSM tokens have been bonded for crowdloans and this portion of the coin's supply will remain out of circulation for 12 months.
4. Chemical compound Finance (COMP)
- Circulating supply: 5.40 million
- Max supply: 10 million
- Current Toll: $414.07
Compound Finance is a decentralised lending platform based on Ethereum, where involvement rates are paid out algorithmically on cryptocurrency deposits. The rates paid to depositors adjust automatically according to supply and need, with users also receiving COMP tokens.
The number of COMP distributed per day to different markets. Source: Compound.Finance.
The project started without a token, just in summer 2020 introduced the COMP token to govern the protocol, which kicked off a moving ridge of governance token launches and saw Compound have the top spot in terms of the DeFi protocol with the almost value locked.
Compound Finance is now fully controlled by COMP holders, where the COMP token is used to advise and vote on changes to the protocol. There are expectations that token holders will be able to pale a claim on the greenbacks flows of Chemical compound in the future.
v. Gnosis (GNO)
- Circulating supply: 1.fifty 1000000
- Max supply: 10 meg
- Current Price: $302.63
Gnosis is a decentralised prediction market place congenital on Ethereum and GNO is the native token of the platform, which is used to generate OWL tokens. OWL tokens are used as collateral in Gnosis prediction markets and can only be created past locking GNO.
The native GNO token can also be used to participate in the Gnosis protocol'south governance, where in the last stages of a proposal holders of the GNO token collectively decide the outcome of a proposal.
In Apr 2017, an initial money offering for the GNO cryptocurrency raised 250,000 ETH (worth about $12.five one thousand thousand at the time) by selling 4 per centum of its supply. Using a Dutch auction, the token was sold for just nether $30 and the auction ended in under fifteen minutes.
half dozen. Maker (MKR)
- Circulating supply: 901,310
- Max supply: ane.005 meg
- Current Price: $3,762.43
MakerDAO is a decentralised autonomous organization for the Dai stablecoin and the MKR ERC-20 token is used for governance of the platform assuasive holders to vote on diverse parameters such as the stability fee, debt ceiling, types of collateral to be used, Dai Savings Rate and more.
MKR tokens were first distributed in Nov 2017 through private sales and has since get the most valuable DeFi-related token. Anyone can open up a Maker vault, deposit some cryptocurrency equally collateral and generate the Dai stablecoin as a debt against the collateral.
Along with the governance utilise case, MKR is too used as a balancing mechanism for the Maker protocol. If the protocol'southward system surplus exceeds a minimum threshold then MKR tokens are destroyed. On the other hand, when the protocol is running a deficit and the organisation debt exceeds a maximum threshold, then MKR are created and auctioned for Dai to recapitalise the system.
7. yearn.finance (YFI)
- Circulating supply: 35,666
- Max supply: 36,666
- Current Price: $37,667.53
yearn.finance is a decentralised asset management platform that has multiple uses ranging from liquidity provision, lending, to insurance. The main production in its ecosystem is Vaults which implements various yield farming strategies proposed by the community to maximise returns.
The governance token for yearn.finance is YFI and token holders are eligible to receive a portion of the protocol'due south profits. These profits are held in Yearn Treasury Vault, if the maximum of $500,000 has accrued and so the rest of the profits are distributed to stakeholders.
YFI was launched with 0 supply without a pre-mine for the squad or early investors. Instead, the 30,000 tokens were distributed equally to users of the platform and liquidity providers. After the launch of the token, the price of YFI briefly surpassed the price of Bitcoin, reaching an all-time high of 4.xx BTC in September 2020.
Historical YFI-BTC commutation charge per unit. Source: CoinGecko.
While supply dynamics are one important factor to consider as an investor or trader, the demand side cannot be ignored and we must analyse these two factors in conjunction to make an investment decision.
What are your thoughts virtually the investment potential of these coins? Are there any cryptocurrencies in the listing you'd like to meet on Rollbit? Let us know via Discord or on Twitter!
-The Rollbit Team