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 a higher market cap 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, Starknet ($STRK) at 0.07, Saga ($SAGA) is 0.09. These 4 lowest circulating cryptocurrencies are all launching in 2023 or 2024.

Source: Coin Gecko

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

Note: "Full dilution" means that all tokens of the cryptocurrency have been issued and circulated 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-volume cryptocurrencies are relatively recent additions to the market: 54 of the 64 low-volume large-cap cryptocurrencies were launched in the past four years (12 in 2021, 12 in 2022 There will be 13 in 2023, 17 in 2023, and 12 as of now in 2024). As more projects release tokens, the oversupply brought about by future token unlocks is expected to continue to put pressure on the cryptocurrency market.

2. How many cryptocurrencies have fully diluted market caps?

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 have been issued and circulated in the market, and there are no tokens that are about to be unlocked.

Compared to 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.

Notably, 14 of these 74 fully diluted cryptocurrencies are meme coins. And most of the fully dilutive cryptocurrencies launching in 2023 and 2024 are also meme coins, like Pepe ($PEPE) and dogwifhat ($WIF). This reflects the recent trend of meme coins becoming an ongoing narrative or regularly rotating in the cryptocurrency market.

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

High-circulation cryptocurrencies account for 162 of the top 300 market cap cryptocurrencies, meaning 54.0% of 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), which is 0.93, and Near Protocol ($NEAR), which is 0.90.

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

2) High-circulation cryptocurrencies vs. low-circulation cryptocurrencies

As of 2024, the percentage market share of fully diluted market cap, high float, and low float cryptocurrencies among the top 300 cryptocurrencies by market cap is as follows:

Source: Vernacular Blockchain

3. Comments

This study used data from CoinGecko and examined the top 300 cryptocurrencies by market capitalization as of May 8, 2024, excluding stablecoins and wrapped 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 have a ratio of 0.50 to 0.99, and only cryptocurrencies with a ratio of 1 are considered 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.

  • This article is reprinted with permission from: "Foresight News"

  • Original author: Vernacular Blockchain