In the fast-evolving world of cryptocurrency, understanding tokenomics is crucial for making informed investment decisions. One often overlooked but highly significant metric is the circulating supply—the portion of a cryptocurrency’s total tokens that are publicly available and tradable. When a crypto asset has a high market cap but low circulating supply, it can signal both opportunity and risk.
Recent data from CoinGecko reveals that 21.3% of the top 300 cryptocurrencies by market cap are considered low float, meaning less than half of their total supply is in circulation. This results in a market cap to fully diluted valuation (FDV) ratio below 0.5—a key indicator of how much supply could flood the market in the future.
This article explores the implications of low circulating supply, highlights four standout projects with high growth potential, and explains why investors should pay close attention to upcoming token unlocks.
What Is a Low Float Cryptocurrency?
A low float cryptocurrency is one where only a small percentage of its total or maximum supply is currently available on the open market. The rest may be locked for team members, reserved for future ecosystem development, or held in reserve by foundations.
The market cap to FDV ratio helps quantify this:
- Market Cap = Current price × Circulating Supply
- FDV = Current price × Maximum (or total) Supply
A low ratio (e.g., 0.02–0.49) indicates that most tokens haven’t been released yet. While this can create scarcity-driven price surges in the short term, it also poses risks when large volumes unlock and sell off.
👉 Discover how token unlocks impact market dynamics and investor strategy.
The Top 4 Low Float Cryptocurrencies to Monitor
Among the lowest float projects in the top market cap tier, four stand out due to their innovative technology, strong backing, and upcoming unlock schedules:
1. Worldcoin (WLD) – Ratio: 0.02
Launched in 2023, Worldcoin (WLD) aims to build a global digital identity and financial network using biometric verification (via iris scanning). With a market cap to FDV ratio of just 0.02, over 98% of its supply remains unissued.
Backed by Sam Altman (CEO of OpenAI), Worldcoin has sparked debate over privacy and decentralization but continues to grow its user base across Africa, Asia, and Latin America. As more people enroll and tokens are distributed, expect increased market activity and volatility.
2. Cheelee (CHEEL) – Ratio: 0.06
Cheelee is a social blockchain platform that monetizes internet attention through short-form video content—similar to decentralized TikTok models. Despite launching in early 2024, it achieved a surprising market cap due to aggressive community building.
With a market cap to FDV ratio of 0.06, Cheelee has one of the tightest floats in the ecosystem. Most tokens are allocated to creators and stakers, with gradual releases planned over several years. This controlled distribution could support long-term price stability—if engagement keeps growing.
3. Starknet (STRK) – Ratio: 0.07
As a leading ZK-Rollup Layer 2 solution on Ethereum, Starknet offers scalable smart contract execution with lower fees and faster transactions. Its native token, STRK, was airdropped in 2024 to early users and developers.
At a ratio of 0.07, Starknet remains heavily undiluted. However, its robust developer ecosystem and integration with major DeFi protocols make it a strong contender in the race for Ethereum scalability. Future unlocks will be closely watched by institutional investors.
4. Saga (SAGA) – Ratio: 0.09
Saga introduces a novel approach to blockchain modularity by enabling app-specific chains (called "chainlets") within a shared validator network. This architecture improves performance while maintaining security.
Saga launched in late 2023 with significant venture capital support. Its FDV ratio of 0.09 suggests massive potential supply inflation down the line—but also significant room for growth if adoption meets expectations.
High Circulating Supply vs. Low Float: What’s the Difference?
While low float cryptos grab headlines during bull runs, it's important to understand the broader landscape:
- 54% of top 300 cryptos are high float, meaning more than half their supply is already circulating.
- Only 24.7% (74 assets) are fully diluted—every token has been issued and is tradable.
Nearly 28.7% of large-cap cryptos have an FDV ratio above 0.8, including established players like:
- Maker (MKR): 0.95
- Aave (AAVE): 0.93
- Near Protocol (NEAR): 0.90
These mature projects tend to exhibit less volatility because supply shocks are minimal. In contrast, newer low-float tokens often experience sharp price swings around unlock events.
Why Meme Coins Are Dominating Fully Diluted Supply
Interestingly, 14 of the 74 fully diluted cryptos are meme coins, including PEPE and dogwifhat (WIF). Most were launched in 2023–2024, reflecting a trend where meme projects opt for immediate, fair launches with no vesting periods.
This contrasts sharply with traditional Web3 startups, which typically lock team and investor tokens for years. Meme coins thrive on hype and equal access—making full dilution a feature, not a flaw.
However, without underlying utility or revenue models, many struggle with long-term sustainability.
👉 Learn how to analyze token unlock schedules before they impact your portfolio.
Market Implications of Future Token Unlocks
With 54 of the 64 low-float cryptos launched since 2021, the next few years will see unprecedented levels of token releases. These unlock events can:
- Trigger sell pressure from early investors and teams
- Dilute existing holders’ value
- Influence overall market sentiment during bear or sideways markets
Yet, if projects deliver real utility and adoption ahead of unlocks, demand may absorb new supply—potentially driving prices higher.
Key Takeaways for Investors
- ✅ Scarcity drives price action: Low float can amplify gains during rallies.
- ⚠️ Unlocks equal risk: Be aware of vesting schedules and large holder movements.
- 🔍 Do your own research: Evaluate use cases, team credibility, and roadmap progress.
- 📊 Track FDV ratios: Use them alongside market cap to assess true valuation.
Frequently Asked Questions (FAQ)
Q: What does “low float” mean in crypto?
A: A low float means only a small portion of a cryptocurrency’s total supply is available for trading, often resulting in higher volatility and price sensitivity to demand changes.
Q: Why is FDV important when evaluating a crypto project?
A: FDV shows what the market cap would be if all tokens were in circulation. It helps investors anticipate future dilution and assess whether current prices are sustainable.
Q: Can a low float crypto sustain long-term growth?
A: Yes—but only if the project delivers real utility, adoption, and manages token unlocks responsibly. Without fundamentals, price surges may be short-lived.
Q: How often do token unlocks happen?
A: Unlock schedules vary by project—some release tokens monthly over four years; others use cliff releases after six months. Always check the official tokenomics.
Q: Are meme coins safer if they’re fully diluted?
A: Full dilution reduces sudden sell-offs, but meme coins still carry high risk due to lack of fundamentals and reliance on social trends.
Q: Where can I track upcoming token unlocks?
A: Several analytics platforms provide unlock calendars—monitoring these can help avoid unexpected volatility.
👉 Stay ahead with real-time data on token unlocks and market movements.