Understanding Low-Circulation Cryptocurrencies
Low-circulation cryptocurrencies account for 21.3% of the top 300 cryptocurrencies by market capitalization. This means 1 in 5 high-market-cap cryptocurrencies have most of their token supply locked, resulting in a market-cap-to-FDV (Fully Diluted Valuation) ratio below 0.5.
Key Findings:
- 54% of top cryptocurrencies are high-circulation (over 50% tokens unlocked).
- Only 24.7% are fully diluted (all tokens circulating).
- 64 low-circulation tokens exist among the top 300, with 54 launched in the past 4 years (2021–2024).
Top 4 Lowest-Circulation Cryptocurrencies (2023–2024 Releases)
Worldcoin (WLD)
- Market-cap-to-FDV ratio: 0.02
- A privacy-focused digital identity project.
Cheelee (CHEEL)
- Ratio: 0.06
- A social media platform with gamified rewards.
Starknet (STRK)
- Ratio: 0.07
- Ethereum Layer 2 scaling solution.
Saga (SAGA)
- Ratio: 0.09
- A blockchain protocol for developer-centric tools.
👉 Explore these tokens’ latest trends
Fully Diluted Cryptocurrencies: Rare but Stable
Only 74 tokens in the top 300 are fully diluted (market-cap-to-FDV = 1). Notably:
- 46 were launched between 2014–2020 (e.g., Maker, Aave).
- 14 are memecoins (e.g., Pepe, Dogwifhat), reflecting recent market trends.
FAQ Section
Q1: Why does low circulation matter?
A: Low circulation can lead to higher price volatility as unlocked tokens enter the market.
Q2: Are newer cryptocurrencies more likely to have low circulation?
A: Yes—84% of low-circulation tokens were launched post-2020.
Q3: What risks do low-circulation tokens carry?
A: Potential sell pressure from future token unlocks may impact prices.
Key Takeaways
- Monitor token unlock schedules for low-circulation projects.
- Fully diluted tokens (e.g., established Layer 1 blockchains) offer more stability.
- Diversify portfolios with both high- and low-circulation assets.
For deeper insights, check our analysis 👉 here.
Data sourced from CoinGecko (May 2024). This is not financial advice—always conduct independent research.