๐Buckle up, BTC enthusiasts! Binance Research has confirmed a growing trend of tokens launching with limited circulating supply and high valuations. ๐๐ฐ
This high valuation, low liquidity crisis is fueled by an influx of private market capital, aggressive valuations, and a positive market outlook. The report estimates a whopping $155 billion worth of tokens will be unlocked from 2024 to 2030. But hold on, there's a catch! ๐ค
Without a proportional increase in buy-side demand, this could lead to substantial selling pressure, challenging the market's ability to absorb these tokens without negatively impacting prices. ๐
The analysis also highlights a growing gap between market caps and fully diluted valuations (FDVs) for tokens launched over the past three years. This is primarily driven by recent token launches with extremely low circulating supplies, often under 20% of the total supply, inflating their FDVs. ๐
But don't worry, Binance has a plan! To address this trend, Binance is taking the lead in fostering a healthy and sustainable market environment. They're inviting high-quality teams and projects to apply for the exchangeโs listing programs. So, let's see how this plays out! ๐ฏ๐
Remember, always keep your eyes on BTC! ๐๐ซ