Memecoin Market Cap Versus Fully Diluted Value
Confusing circulating supply with maximum potential supply can make a small-looking token seem more attractive than it is.
Market capitalization is typically calculated from price multiplied by circulating supply. Fully diluted valuation generally extends the same price to a broader potential supply, depending on the project's methodology. Those two quantities may diverge sharply when significant token allocations remain locked or not yet issued.
A newly listed asset could report a striking percentage rally while only a small fraction of tokens is transferable. Future vesting and liquidity arrangements may shape incentives for insiders and other holders. Conversely, a token with nearly its entire supply circulating may still face high concentration among a few wallets.
Readers should identify the actual supply definition used by a data site and compare it with transparent contract and allocation data. A low unit price tells little about valuation without the denominator. This is a measurement explainer, not a ranking of coins to buy.
Reporting sources & references
These links identify the reporting or public materials on which the article is based; they do not imply our newsroom witnessed the events.