I was asked: “Why does ‘low circulating supply, high FDV’ keep coming up for discussion?
My answer: ‘Low circulating supply, high FDV’ means that a very small proportion of a token is in circulation when it launches, while its fully diluted valuation (FDV), based on the current price, is very high. When the circulating supply is low, even a small amount of capital can push the price up, inflating the valuation as well. Once a large number of tokens are unlocked, much more capital is needed to absorb them.
$BNB 692.41 (-3.15%)
What topic would you like to see? Let me know in the comments.
My answer: ‘Low circulating supply, high FDV’ means that a very small proportion of a token is in circulation when it launches, while its fully diluted valuation (FDV), based on the current price, is very high. When the circulating supply is low, even a small amount of capital can push the price up, inflating the valuation as well. Once a large number of tokens are unlocked, much more capital is needed to absorb them.
$BNB 692.41 (-3.15%)
What topic would you like to see? Let me know in the comments.