What’s the difference between market cap and FDV? Many people can’t explain it!
Circulating market cap ÷ FDV roughly indicates the current circulating ratio. The lower this ratio, the more tokens are yet to be unlocked.
Looking only at circulating market cap can underestimate a token’s overall valuation: if there isn’t enough demand to absorb tokens released in the future, the price may be diluted.
Understanding the principle helps you make informed decisions; it’s not for predicting price movements.
$BTC 82761.55(-0.78%)
#BTC
Data is for reference only. Don’t take it as fact.
Circulating market cap ÷ FDV roughly indicates the current circulating ratio. The lower this ratio, the more tokens are yet to be unlocked.
Looking only at circulating market cap can underestimate a token’s overall valuation: if there isn’t enough demand to absorb tokens released in the future, the price may be diluted.
Understanding the principle helps you make informed decisions; it’s not for predicting price movements.
$BTC 82761.55(-0.78%)
#BTC
Data is for reference only. Don’t take it as fact.