How many low-circulation cryptocurrencies are there? These five tokens are worth paying attention to

Author: Lim Yu Qian

1. How many low-circulation cryptocurrencies are there?

Low-circulation cryptocurrencies account for 21.3% of the top 300 cryptocurrencies by market capitalization. This means that one in every five cryptocurrencies with higher market caps has a large portion of their token supply yet to be unlocked, resulting in a market cap to fully diluted valuation (FDV) ratio below 0.5.

Among the cryptocurrencies with higher market caps, the 4 lowest circulating cryptocurrencies are Worldcoin (WLD) with a market cap to FDV ratio of 0.02, followed by Cheelee (CHEEL) at 0.06, and Starknet (STRK) is 0.07 and Saga (SAGA) is 0.09. These 4 lowest circulating cryptocurrencies are all scheduled to be released in 2023 or 2024.

#The top 21% of cryptocurrencies by market cap are low-circulation, while only 25% are fully diluted.

Note: "Comprehensive dilution" refers to all tokens of the cryptocurrency having been issued and circulating in the market. In other words, a fully diluted cryptocurrency is one where no tokens are locked or reserved and all tokens available for circulation have been issued.

Most low-circulation cryptocurrencies are relatively new market additions: of the 64 low-circulation large-cap cryptocurrencies, 54 were launched in the past four years (2021 There will be 12 in 2022, 13 in 2022, 17 in 2023, and 12 as of now in 2024). As more projects release tokens, the oversupply caused by token unlocking in the future is expected to continue to put pressure on the cryptocurrency market.

2. How many cryptocurrencies have fully diluted market capitalization?

Of the top 300 cryptocurrencies by market cap, 74 have a market cap to fully diluted valuation (FDV) ratio of 1. In other words, only 24.7% of the tokens of large-capitalization cryptocurrencies are fully issued and circulating in the market, and there are no tokens that are about to be unlocked.

Compared with low-circulation cryptocurrencies, less than half, or only 28, were launched in the past four years. Most of the 74 cryptocurrencies, 46, were launched between 2014 and 2020.

It’s worth noting that 14 of these 74 fully diluted cryptocurrencies are memecoins. And most of the fully dilutive cryptocurrencies released in 2023 and 2024 are also memecoins, such as Pepe (PEPE) and dogwifhat (WIF). This reflects the recent trend of memecoins becoming an ongoing narrative or regularly rotating in the cryptocurrency market.

1) 54% of large-cap cryptocurrencies are high-circulation cryptocurrencies

High-circulation cryptocurrencies occupy 162 of the top 300 market caps, which means 54.0% Large-cap cryptocurrencies have unlocked more than half of the token supply.

In particular, 28.7% of large-cap cryptocurrencies are nearly fully diluted, with a market cap to FDV ratio of 0.80 or higher. This mainly includes older cryptocurrencies such as Maker (MKR), which has a market cap to FDV ratio of 0.95, Aave (AAVE) at 0.93, and Near Protocol (NEAR) at 0.90.

Overall, the average market cap to FDV ratio of the top 300 cryptocurrencies by market capitalization is 0.73.

2) High-circulation cryptocurrencies and low-circulation cryptocurrencies

As of 2024, among the top 300 cryptocurrencies by market capitalization, the market capitalization, high-circulation and low-circulation cryptocurrencies will be fully diluted The percentage share of Cryptocurrencies were studied, excluding stablecoins and encapsulated assets. For cryptocurrencies that do not have a maximum supply, the fully diluted valuation is considered the same as the market cap.

For the purposes of this study, low-float cryptocurrencies are defined as those with a market cap to FDV ratio of 0 to 0.49, high-float cryptocurrencies with a ratio of 0.50 to 0.99, and only cryptocurrencies with a ratio of 1 The currency is seen as fully diluted.

This research is for illustrative and informational purposes only and does not constitute financial advice. Always conduct your own research and exercise caution when investing money in any cryptocurrency or financial asset.

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