The cryptocurrency market continues to evolve at a rapid pace, with new tokens launching regularly and existing projects unlocking portions of their supply. A recent analysis of the top 300 cryptocurrencies by market capitalization reveals a striking trend: 21.3% are low-floating, meaning a significant portion of their total token supply remains locked or unissued. At the same time, only 25% of these assets are fully diluted, with all tokens already in circulation.
This imbalance has important implications for investors, market dynamics, and price volatility. Understanding the distribution of token supply—whether low-floating, high-floating, or fully diluted—can provide valuable insights into potential future price pressure, project maturity, and long-term sustainability.
What Defines a Low-Floating Cryptocurrency?
A low-floating cryptocurrency is one where only a small fraction of the total token supply is currently available for trading. In this study, tokens with a market cap to fully diluted valuation (FDV) ratio below 0.5 are classified as low-floating. This means that if all tokens were released today, the effective market value would be at least double the current price.
Among the top 300 cryptocurrencies, 64 (or 21.3%) fall into this low-floating category. These projects often implement vesting schedules for team members, investors, and ecosystem development funds, which can span several years.
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The four lowest-floating tokens are particularly noteworthy:
- Worldcoin (WLD) – Market Cap / FDV = 0.02
- Cheelee (CHEEL) – Market Cap / FDV = 0.06
- Starknet (STRK) – Market Cap / FDV = 0.07
- Saga (SAGA) – Market Cap / FDV = 0.09
All four were launched in 2023 or 2024, highlighting how newer projects tend to retain large portions of their supply for future distribution.
This delayed release model can benefit early investors by reducing immediate sell pressure. However, it also introduces uncertainty—when large token unlocks occur, they may flood the market and lead to price declines unless demand keeps pace.
How Many Cryptocurrencies Are Fully Diluted?
A fully diluted cryptocurrency is one where all tokens have been issued and are available for trading—there are no future unlocks or vesting schedules. In technical terms, this means the market cap equals the FDV, resulting in a ratio of 1.0.
Out of the top 300 cryptocurrencies, only 74 (about 24.7%) are fully diluted. Interestingly, nearly 19% of these (14 in total) are memecoins, including well-known names like Pepe (PEPE) and dogwifhat (WIF).
Memecoins often launch with all tokens pre-minted and distributed quickly through fair launches or liquidity pools, avoiding centralized control and long-term vesting structures. Their rise reflects a growing cultural narrative within crypto—one driven more by community sentiment than traditional tokenomics.
In contrast to low-floating tokens, most fully diluted projects are older, with 46 of the 74 launched between 2014 and 2020. This suggests that as projects mature, they gradually unlock their supplies until full dilution is reached.
High-Floating Cryptocurrencies Dominate Mid-Tier Supply
Beyond the extremes of low-floating and fully diluted assets lies a large middle group: high-floating cryptocurrencies, defined as those with a market cap to FDV ratio between 0.50 and 0.99.
There are 162 high-floating tokens among the top 300, accounting for 54% of the market. These represent projects that have released more than half of their total supply but still have some tokens locked.
Notably:
- 28.7% of top cryptocurrencies are nearly fully diluted (ratio ≥ 0.80).
- Examples include Maker (MKR) at 0.95, Aave (AAVE) at 0.93, and Near Protocol (NEAR) at 0.90.
These mature DeFi and infrastructure projects demonstrate balanced token distribution strategies—providing enough liquidity for trading while retaining incentives for long-term contributors.
The average market cap to FDV ratio across the top 300 is 0.73, indicating that most projects sit comfortably in the high-floating zone rather than being extremely restricted or completely open.
Why Token Supply Distribution Matters
Understanding floating supply is critical for assessing investment risk and market behavior.
Key Implications:
- Price Volatility: Large upcoming unlocks can trigger sell-offs, especially if early investors or teams cash out.
- Market Manipulation Risk: Low float increases susceptibility to pumps and dumps due to limited circulating supply.
- Investor Confidence: Transparent vesting schedules and gradual unlocks signal responsible project management.
- Long-Term Sustainability: Projects that balance early liquidity with long-term incentives tend to build stronger ecosystems.
Newer projects dominate the low-floating segment: of the 64 low-floating tokens, 54 were launched since 2021 (12 in 2021, 13 in 2022, 17 in 2023, and 12 so far in 2024). As these projects continue unlocking tokens over time, the market may face sustained supply pressure—especially during bullish cycles when profit-taking intensifies.
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Frequently Asked Questions (FAQ)
Q: What does "low float" mean in crypto?
A: A low float means only a small percentage of a cryptocurrency’s total supply is available for trading. This typically results in a market cap to FDV ratio below 0.5 and can lead to higher volatility.
Q: Why do some projects keep most tokens locked?
A: Locking tokens helps prevent early dumping by insiders, supports long-term development funding, and aligns incentives across teams, investors, and communities through vesting schedules.
Q: Are memecoins usually fully diluted?
Yes—most memecoins launch with all tokens pre-minted and immediately available. Examples include PEPE, WIF, and SHIB, which rely on decentralized distribution rather than staged releases.
Q: How does FDV differ from market cap?
Market cap only considers currently circulating tokens multiplied by price. FDV assumes all tokens are in circulation at current price—even those not yet released—giving a fuller picture of potential valuation.
Q: Should I avoid low-floating cryptocurrencies?
Not necessarily. While they carry higher risk due to future unlocks, they can also offer growth potential if demand rises faster than supply. Always research vesting schedules before investing.
Q: Where can I check a token’s unlock schedule?
Many blockchain explorers, analytics platforms like TokenUnlocks.app or CoinGecko, and official project websites publish detailed tokenomics and vesting timelines.
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Final Thoughts
The data paints a clear picture: the majority of major cryptocurrencies are not yet fully diluted, and a significant minority remain tightly constrained in supply. While this structure supports early-stage growth and stability, it also demands greater diligence from investors monitoring future unlock events.
As the market matures, we’re likely to see a shift toward greater transparency in token distribution, with more projects adopting clear vesting models and predictable emission schedules. For now, understanding whether a project is low-floating, high-floating, or fully diluted remains an essential part of any sound crypto investment strategy.