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CoinMarketCap, a source for cryptocurrency market information, announced in a blog post that it will introduce new tools for analyzing token launches.
In 2025, two additional metrics will be incorporated into its platform. These enhancements aim to offer users insights into the potential selling pressure linked to newly launched cryptoassets.
Tokens With Low Float Generate Market Instability
The tools will tackle issues related to tokens that have a low float and high fully diluted valuations (FDV), which contribute to market instability.
The two new metrics will include: “Unlocked Circulating Supply” (UCS) and “Unlocked Market Capitalization” (UMC).
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FDV represents the total market capitalization if all tokens were in circulation. A high FDV compared to MCAP can result in considerable supply inflation and sell-side pressure, according to the data firm.
“In recent months, we’ve seen tokens being launched at elevated valuations with a low initial float,” stated Rush Lu, CEO of CoinMarketCap, in a blog entry. “UCS and UMC are aimed at equipping traders with improved tools to foresee these risks,” Rush added.
With UCS and UMC, users will acquire a deeper understanding of how much supply might be available for sale in the market at any moment.
CoinMarketCap Introduces S&P 500 For Cryptocurrency
This month, CoinMarketCap unveiled the CoinMarketCap 100 Index. The index evaluates the performance of the top 100 cryptocurrencies based on market capitalization.
The post Data Firm CoinMarketCap Adds New Metrics for Token Launches appeared first on Cryptonews.
