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What factors contribute to the calculation of the fully diluted valuation in the crypto market?

avatarKhoi PhamDec 25, 2021 · 3 years ago1 answers

In the crypto market, what are the various factors that are taken into account when calculating the fully diluted valuation of a cryptocurrency?

What factors contribute to the calculation of the fully diluted valuation in the crypto market?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    When it comes to calculating the fully diluted valuation in the crypto market, the process can vary depending on the project and its tokenomics. One common approach is to multiply the current price of a single token by the total supply of tokens, including those that are not yet in circulation. This provides an estimate of the maximum potential market capitalization. However, it's important to consider other factors such as token distribution, lock-up periods, and any future token releases. Additionally, market sentiment and demand play a significant role in determining the fully diluted valuation. It's crucial to analyze the project's fundamentals and market conditions to get a comprehensive understanding of its fully diluted valuation.