Definition ∞ Supply Growth refers to the rate at which the total number of circulating digital assets or tokens increases over time. This metric is a key economic factor influencing the value and scarcity of a cryptocurrency. It is determined by the protocol’s issuance schedule, mining rewards, or token distribution mechanisms. Understanding supply growth is essential for evaluating a digital asset’s long-term economic model.
Context ∞ News frequently analyzes Supply Growth in discussions about cryptocurrency inflation, tokenomics, and the long-term investment viability of various digital assets. Protocols with predictable or decreasing supply growth are often viewed favorably, while uncontrolled issuance can lead to devaluation. Significant changes to a protocol’s supply schedule are closely monitored by market participants.