Let’s talk about circulating market cap and FDV.
Circulating market cap divided by FDV roughly equals the current circulating supply ratio. The lower this ratio, the more tokens are yet to be released.
To be honest, I hadn’t paid attention to this before either: for new coins with a very low circulating supply ratio, check the unlock schedule for the coming year before deciding how much to invest.
$BTC has a maximum supply of 21 million tokens, most of which have already been mined, so its market cap and FDV are not far apart.
Understanding the basics can help you avoid some pitfalls, but it can’t replace risk management.
Circulating market cap divided by FDV roughly equals the current circulating supply ratio. The lower this ratio, the more tokens are yet to be released.
To be honest, I hadn’t paid attention to this before either: for new coins with a very low circulating supply ratio, check the unlock schedule for the coming year before deciding how much to invest.
$BTC has a maximum supply of 21 million tokens, most of which have already been mined, so its market cap and FDV are not far apart.
Understanding the basics can help you avoid some pitfalls, but it can’t replace risk management.