How does fully diluted market cap affect the valuation of a digital currency?

1 answers

• Bharath VijayendraFeb 18, 2025 · 4 months ago
  The fully diluted market cap is a metric that considers the maximum potential value of a digital currency by including all the tokens that could be in circulation. It takes into account not only the currently circulating supply but also the tokens that are locked or held by the team and investors. The fully diluted market cap can provide insights into the overall value of a cryptocurrency, but it's important to note that it may not accurately represent the actual market value. Other factors such as market demand, adoption, and competition also impact the valuation of a digital currency. Investors should consider multiple factors and conduct thorough research before making any investment decisions based on the fully diluted market cap.
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