Binance experts reveal the threat of tokens with low circulating supply.

Tokens with low initial circulating supply completely dilute their value ratio and threaten the cryptocurrency market.

Binance experts have released a new report analyzing tokens launched in 2024. According to the study, the ratio of initial circulating supply to fully diluted value (FDV) is the lowest in years, indicating potentially high selling pressure that could negatively impact the cryptocurrency market.

At the same time, the total number of tokens issued since early 2024 is already close to the 2023 figure, with Binance analysts suggesting that the number of projects with high FDV continues to increase due to low initial circulating supply.

With a capitalization rate of 12.3% for FDV, a financial injection of approximately $80 billion would be required to support the current price of these tokens. Experts pointed out that this will support demand and balance pressure from sellers.

Initial price increase due to low circulating supply

The main reason for this trend is the low circulating supply of the token when it is launched. A low share of circulating supply at the same demand volume stimulates price increases at the start of the project.

The launch of these projects has changed market dynamics, increasing sales pressure. According to the report, $155 billion worth of tokens will be unlocked by 2030. With this in mind, it is very important to consider and monitor the timeline for bringing new volumes of assets to market.

The role of meme coins in the market

Experts concluded that the structure was partly responsible for the new wave of demand for meme coins. He also noted that some investors see this asset class as a way to respond to large-scale projects launched with the participation of institutional investors.

Meme coins have become an important part of the cryptocurrency world. Analysts at Franklin Templeton believe this type of asset has become popular due to the desire of some traders to make quick profits with low fees.