Stock 23-12-2024 11:04 0 Views

Data Firm CoinMarketCap Adds New Metrics for Token Launches

CoinMarketCap, a provider of crypto market data, will add new tools to analyse token launches, said the firm in a blog post.

Two new metrics will be added in 2025 to its platform. The updates are designed to provide users with insights into the potential selling pressure associated with recently launched cryptoassets.

Tokens With Low Float Create Market Volatility

The tools will address concerns surrounding tokens with low float and high fully diluted valuations (FDV), which create market volatility.

The two new metrics are: “Unlocked Circulating Supply” (UCS) and “Unlocked Market Capitalization” (UMC).

FDV is the total market capitalization if all tokens are in circulation. A high FDV relative to MCAP may lead to significant supply inflation and sell-side pressure, said the data firm.

“In recent months, we’ve observed tokens launching at high valuations with low initial float,” said Rush Lu, CEO of CoinMarketCap in a blog post. “UCS and UMC are designed to provide traders with better tools to anticipate these risks,” said Rush.

Through UCS and UMC, users will gain more understanding of how much supply could potentially be sold in the market at any given time.

CoinMarketCap Launches S&P 500 For Crypto

CoinMarketCap launched the CoinMarketCap 100 Index earlier this month. The index measures the performance of the top 100 cryptocurrencies by market capitalization.

The post Data Firm CoinMarketCap Adds New Metrics for Token Launches appeared first on Cryptonews.

Other news