On low circulating supply and high FDV:
A report by Binance Research says that low circulating supply combined with a high FDV can create excessive selling pressure in the future, which is not ideal for retail investors.
When the circulating supply is low, relatively little capital can push the price up, inflating the valuation as well. When a large number of tokens are unlocked, more capital is needed to absorb them.
$BNB 728.51（-0.08%）
#BNB
A report by Binance Research says that low circulating supply combined with a high FDV can create excessive selling pressure in the future, which is not ideal for retail investors.
When the circulating supply is low, relatively little capital can push the price up, inflating the valuation as well. When a large number of tokens are unlocked, more capital is needed to absorb them.
$BNB 728.51（-0.08%）
#BNB