Low float crypto account for 21.3% of the top 300 crypto by market capitalization, according to an update from CoinGecko.
This means that for 1 out of every 5 large cap crypto, “the majority of their token supply has yet to be unlocked, resulting in a market cap to fully diluted valuation (FDV) ratio that is below 0.5,” the CoinGecko report noted.
Among the large caps, the 4 lowest float crypto “are Worldcoin (WLD) which has a market cap to FDV ratio of 0.02, followed by Cheelee (CHEEL) at 0.06, Starknet (STRK) at 0.07 and Saga (SAGA) at 0.09. All of the 4 lowest float crypto were launched in 2023 or 2024.”
The CoinGecko report added that “most of the low float crypto are relatively new additions to the market: Out of the 64 low float large cap crypto, 54 were launched in the last four years (12 in 2021, 13 in 2022, 17 in 2023 and 12 in 2024 to date).”
Alongside projects launching more tokens, the supply overhang “from upcoming token unlocks is expected to continue adding pressure on the crypto market.”
Among the top 300 crypto, 74 have “a market cap to FDV ratio of 1. In other words, only 24.7% of the large cap crypto are fully diluted, with no upcoming token unlocks.”
The CoinGecko report pointed out that “in contrast to the low float crypto, less than half or just 28 were launched in the last four years.”
As stated in the research report, the majority 46 out of 74 were “launched between 2014 to 2020.”
Notably, 14 out of the 74 fully diluted crypto are memecoins.
Memecoins also account for “most of the fully diluted crypto launched in 2023 and 2024, such as Pepe (PEPE) and dogwifhat (WIF).”
This reflects the recent shift “towards memecoins becoming an ongoing narrative or regular rotation in the crypto market.”
The CoinGecko report also mentioned that high float crypto account “for 162 of the top 300 crypto, which means that 54.0% of large cap crypto have already unlocked more than half of their token supply.”
In particular, 28.7% of large cap crypto “are almost fully diluted, with market cap to FDV ratios of 0.80 or higher.”
As explained in the research report, this mainly “includes older crypto such as Maker (MKR), which has a market cap to FDV ratio of 0.95, Aave (AAVE) at 0.93 and Near Protocol (NEAR) at 0.90.”
Overall, the average market cap “to FDV ratio of the top 300 crypto is 0.73.”
Methodology
The study examined CoinGecko data “for the market capitalization to fully diluted valuation (FDV) ratio of the top 300 crypto, ranked by market capitalization on May 8, 2024, after excluding stablecoins and wrapped assets.”
For crypto with no maximum supply, “fully diluted valuation was taken to be the same as market capitalization.”
For the purpose of this study, low float crypto “was defined as having a market cap to FDV ratio of 0 to 0.49, high float crypto had ratios of 0.50 to 0.99, and only crypto with a ratio of 1 were considered as fully diluted.”
