Why is the fully diluted market cap an important metric for investors in digital currencies?

3 answers

• Bright kids of AmericaAug 29, 2024 · 10 months ago
  The fully diluted market cap is an important metric for investors in digital currencies because it provides a more accurate representation of a cryptocurrency's potential value. Unlike the regular market cap, which only takes into account the circulating supply of coins, the fully diluted market cap includes all the coins that could potentially be in circulation. This metric is particularly relevant for cryptocurrencies with a large number of coins that are yet to be released or are locked up in contracts. By considering the fully diluted market cap, investors can better assess the potential future supply and demand dynamics of a digital currency, which can impact its price and overall market performance.
  714

  357
• Pooja KulkarniMay 25, 2021 · 4 years ago
  Investors in digital currencies pay close attention to the fully diluted market cap because it helps them evaluate the long-term growth potential of a cryptocurrency. The fully diluted market cap takes into account the maximum supply of coins that could ever be in circulation, which provides a more comprehensive view of the cryptocurrency's market value. This metric is especially important for cryptocurrencies that have a high inflation rate or a large number of tokens yet to be released. By considering the fully diluted market cap, investors can assess the potential dilution of their holdings and make more informed investment decisions.
  645

  215
• Carlos VicenteFeb 12, 2022 · 3 years ago
  As a leading digital currency exchange, BYDFi recognizes the importance of the fully diluted market cap for investors. The fully diluted market cap provides a more complete picture of a cryptocurrency's market value by considering all potential coins that could be in circulation. This metric helps investors assess the potential future supply and demand dynamics of a digital currency, which can have a significant impact on its price and overall market performance. By considering the fully diluted market cap, investors can make more informed decisions and better understand the potential risks and rewards associated with investing in digital currencies.
  658

  165