🌎 Low Supply Tokens Impacting Crypto Market with High Selling Pressure

Tokens with Low Initial Circulating Supply to Fully Diluted Value Ratios and Their Impact on the Crypto Market

Experts have released a new report analyzing tokens launched in 2024. The study indicates that the initial circulating supply to fully diluted value (FDV) ratio is at its lowest in several years, potentially creating high selling pressure that could negatively impact the crypto market.

The total number of tokens issued since the beginning of 2024 is already nearing the 2023 figures. Analysts suggest that the number of projects with high FDV, driven by low initial circulating supply, is steadily increasing. With a capitalization to FDV ratio of 12.3%, approximately $80 billion will be required to support the current prices of these tokens. Experts note that this will help balance the demand and selling pressure.

Low Circulating Supply Driving Initial Price Increases

The primary reason for this trend is the low volume of circulating supply when tokens are launched. With constant demand, a low share of circulating supply stimulates price increases at the project’s launch stage. This dynamic has changed market behaviors, increasing selling pressure. The report highlights that tokens worth $155 billion will be unlocked by 2030, making it crucial to monitor the schedules for new asset releases.

The Role of Meme Coins in the Market

Experts also highlight that the structure is partly responsible for the new wave of demand for meme coins. Some investors view this asset class as a counter to large projects launched with institutional investor participation. Meme coins have become a significant part of the crypto landscape. Analysts believe that these assets have gained popularity due to traders’ desire to make quick profits with low fees.

The excitement around meme coins continues. These tokens are showing substantial growth despite the overall market dynamics, with the market capitalization of meme coins exceeding $58 billion.