low circulation

Binance Report: Low circulation and high FDV token unlocks may trigger selling pressure, with an estimated $155 billion in tokens set to be unlocked from 2024 to 2030

ChainCatcher news, Binance Research recently stated in a report that the prevalence of high valuation and low initial circulating supply tokens has been a topic of discussion in the crypto community in recent months. This stems from concerns that such a market structure leaves little sustainable upside for traders after token generation events (TGE).Data from CoinMarketCap and Token Unlocks confirms that the trend of tokens being issued with low circulating supply and high valuation is on the rise. Notably, it is expected that tokens worth approximately $155 billion will be unlocked from 2024 to 2030. If buyer demand and capital flow do not increase correspondingly, a large influx of tokens into the market could create selling pressure.Factors such as private market capital inflow, aggressive valuations, and optimistic market sentiment contribute to the trend of issuing high FDV tokens. The current market landscape requires investors to possess selection and discernment skills when considering the fundamentals of a project (such as token economics, valuation, and product). Project teams may also need to consider the long-term implications of decisions related to token economics design.VCs continue to play a significant role in the crypto industry, collaborating with project teams to ensure fair supply distribution and reasonable valuations.
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