A new coin’s circulating market cap doesn’t look that high, so why do some people still say it’s overvalued?
FDV is just a theoretical valuation calculated using the current price. To assess the actual pace of supply, you need to look at the token unlock schedule.
Dividing the circulating market cap by the FDV gives you a rough idea of the current circulating supply ratio. The lower the ratio, the more tokens are still to be unlocked down the road.
Don’t laugh—I only learned this after getting burned myself.
The market is always full of surprises, so think ahead about what you’ll do if your judgment turns out to be wrong.
$BTC 82162 (+2.59%)
#BTC
FDV is just a theoretical valuation calculated using the current price. To assess the actual pace of supply, you need to look at the token unlock schedule.
Dividing the circulating market cap by the FDV gives you a rough idea of the current circulating supply ratio. The lower the ratio, the more tokens are still to be unlocked down the road.
Don’t laugh—I only learned this after getting burned myself.
The market is always full of surprises, so think ahead about what you’ll do if your judgment turns out to be wrong.
$BTC 82162 (+2.59%)
#BTC