High FDV, Low Circulating Supply Projects: Analyzing Market Potential and Risks


High FDV, Low Circulating Supply Projects: Analyzing Market Potential and Risks

  coinedition.com 06 August 2024 13:25, UTC

Investing in projects with a small circulating supply but a high fully diluted valuation (FDV) can be a double-edged sword as per Token Unlocks data. These projects often have significant market potential but come with risks that require careful consideration.

Projects that have a small circulating supply but a high fully diluted valuation (FDV) can be quite risky for those looking to invest for the long term

We’ve aggregated some of these projects from different sectors

Do you think these low float, high FDV projects hold up… pic.twitter.com/S2KX6rrg5C

— Token Unlocks (@Token_Unlocks) August 6, 2024

In the Decentralized Exchanges (DEXes) sector, Jupiter is a notable example. With an FDV of $6.90 billion and a circulating supply of only 13.5%, Jupiter illustrates high market interest despite its limited token availability.

Currently, Jupiter’s price stands at $0.82, having risen 12.34% in the past 24 hours. The trading volume has reached $287.34 million, reflecting robust market engagement.

Similarly, Aethir leads the Cloud Services/GPU sector with a substantial FDV of $2.27 billion and just 9% of its tokens in circulation. Aethir’s price is $0.063, and it has experienced a 9.40% increase recently. The trading volume for Aethir is $33.67 million, indicating strong investor interest and potential for growth.

In the Layer 2 Solutions sector, Polygon stands out with an FDV of $3.58 billion and a high circulating supply of 94%. Polygon’s price is $0.41, showing a notable 13.54% increase in the last 24 hours, with a trading volume of $517.86 million. This high circulation rate coupled with significant FDV positions Polygon as a major player in scaling solutions.

The DeFi Yield Farming sector features Ethena, which has an FDV of $3.53 billion but only 12% of its tokens circulating. Ethena’s price is $0.279, and it has seen an 11.31% increase recently, with a trading volume of $81.23 million. These metrics highlight Ethena’s potential while underscoring the risks associated with its low circulating supply.

Emerging sectors such as LSDfi and Cloud Services/GPU are also noteworthy. Jito Labs, with an FDV of $2.11 billion and 12.4% of its tokens circulating, shows significant promise. Jito Labs is priced at $2.32 and has experienced a 9.39% rise in the last 24 hours, with a trading volume of $99.67 million.

Ether Fi, another LSDfi project, has a lower FDV of $190.20 million but is gaining attention with a 16.6% circulating supply and a price of $1.36, up 12.57% recently.

In the cloud services and decentralized storage sector, Arweave, with a 100% circulating supply and an FDV of $1.13 billion, is notable in the Cloud Services sector. Its price is $20.64, showing a 13.57% increase and a trading volume of $124.11 million.

The GameFi sector, featuring Pixel and Decentraland, demonstrates the potential of blockchain-based gaming. Pixel, with a circulating supply of 15.4%, FDV of 542.41million, a market cap of $83.60 million, has a recent price of $0.128 and a 12.17% increase. Decentraland, with 85% of its tokens circulating FDV of 496.20 million and a market cap of $420 million, has seen its price rise to $0.262, reflecting an 11.12% increase.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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