A recent report by Binance experts highlights the risks posed by tokens with low circulating supplies, which could significantly impact the cryptocurrency market.
The study examined tokens launched in 2024, revealing a historic low in the ratio of initial circulating supply to fully diluted value (FDV). This imbalance suggests high selling pressure, which might negatively affect the market’s stability.
Since the start of 2024, the number of new tokens has nearly matched the total issued in 2023.
Binance analysts note a growing trend of projects with high FDV due to low initial circulating supplies.
To maintain current token prices, approximately $80 billion would be needed to balance market demand against selling pressure.
With a capitalization to FDV ratio of 12.3%, this financial support is crucial.
Low initial circulating supplies are driving up prices at launch due to limited availability. This trend is altering market dynamics, leading to increased selling pressure.
The report forecasts that by 2030, tokens worth $155 billion will be unlocked, emphasizing the need to monitor asset release schedules closely.
The report also highlights the role of meme coins in the current market. These tokens have gained traction as a counter to larger, institution-backed projects, appealing to investors looking for quick profits with minimal fees.
Meme coins continue to grow, with market capitalization now exceeding $58 billion, despite broader market trends. Analysts from Franklin Templeton note that their popularity is driven by the desire for rapid gains and low transaction costs.
