A project’s market cap may not look high, so why do some people say it’s overvalued?
FDV is only a reference valuation based on the current price. To understand the actual token supply schedule, you need to look at the unlock schedule.
The circulating market cap divided by the FDV is roughly equal to the current circulating supply ratio. The lower this ratio, the more tokens are yet to be unlocked.
At first, I thought knowing how to read candlestick charts was all I needed. Later, I realized that understanding the rules is the first lesson.
Don’t follow the crowd just because everyone around you is buying.
$BTC 73837.47 (-1.02%)
FDV is only a reference valuation based on the current price. To understand the actual token supply schedule, you need to look at the unlock schedule.
The circulating market cap divided by the FDV is roughly equal to the current circulating supply ratio. The lower this ratio, the more tokens are yet to be unlocked.
At first, I thought knowing how to read candlestick charts was all I needed. Later, I realized that understanding the rules is the first lesson.
Don’t follow the crowd just because everyone around you is buying.
$BTC 73837.47 (-1.02%)
