What is the meaning of fully diluted in the context of cryptocurrency?

3 answers

• Jan 12, 2022 · 3 years ago
  Fully diluted refers to the maximum potential supply of a cryptocurrency, including all possible tokens that could be in circulation. It takes into account not only the current supply but also any tokens that may be created in the future through mining, staking, or other means. This metric is often used to assess the long-term value and potential dilution of a cryptocurrency. It's important to note that fully diluted market cap may not accurately reflect the actual value of a cryptocurrency, as it assumes all tokens are in circulation. The actual market cap, which considers only the current supply, is often a more accurate representation of a cryptocurrency's value.
  674337
• Jan 12, 2022 · 3 years ago
  Imagine you have a pizza, and you cut it into 8 slices. Each slice represents a token of a cryptocurrency. The fully diluted supply would be the total number of slices you could potentially have if you cut the pizza into as many slices as possible. It includes all the slices you have now, plus any potential slices you could create in the future. So, when people talk about fully diluted market cap, they're referring to the value of all the potential slices, not just the ones you currently have. It's a way to estimate the maximum value a cryptocurrency could reach if all tokens were in circulation.
  603201
• Jan 12, 2022 · 3 years ago
  In the context of cryptocurrency, fully diluted refers to the total number of coins or tokens that could potentially be in circulation. This includes not only the current supply but also any tokens that may be created in the future. It's important to understand that fully diluted market cap is a theoretical value and does not necessarily reflect the actual value of a cryptocurrency. The actual value is determined by various factors such as demand, utility, and market conditions. It's also worth noting that fully diluted market cap can be misleading, as it assumes all tokens are in circulation, which may not be the case in reality.
  638160