Low circulating supply and high FDV explained in three sentences:
The ratio of circulating market cap to FDV gives a rough idea of how many tokens are still out of circulation: a ratio of 20% means around 80% have yet to enter the market.
High prices early after launch are often related to a small circulating supply, so they may not reflect the valuation once all tokens are in circulation.
When looking at a new token, first calculate the ratio of circulating market cap to FDV, then check its vesting schedule for the coming year.
$BNB 704.72 (-0.74%)
The ratio of circulating market cap to FDV gives a rough idea of how many tokens are still out of circulation: a ratio of 20% means around 80% have yet to enter the market.
High prices early after launch are often related to a small circulating supply, so they may not reflect the valuation once all tokens are in circulation.
When looking at a new token, first calculate the ratio of circulating market cap to FDV, then check its vesting schedule for the coming year.
$BNB 704.72 (-0.74%)
