Circulating supply and fully diluted valuation
Why low token price does not necessarily mean low valuation.
Circulating supply and fully diluted valuation
| Concept | Explanation | |---|---| | Circulating supply | Units currently available and circulating in the market. | | Total supply | Units created minus units permanently removed, subject to the provider's methodology. | | Maximum supply | The protocol-defined maximum number of units that may exist. | | Market cap | Current price multiplied by circulating supply. | | Fully diluted valuation | Current price multiplied by the maximum or total potential supply used by the provider. |
A token may have a modest circulating market cap but a much larger fully diluted valuation if many tokens remain locked or unissued. Future supply can dilute each existing token's share of the network's total economic value.
Scheduled unlocks can change supply even when demand is unchanged.