The cryptocurrency market continues to evolve at a rapid pace, with new tokens launching regularly and existing projects gradually unlocking their token supplies. One often overlooked but crucial metric in assessing a crypto asset’s true value and potential is its circulating supply—specifically, the ratio between market cap and fully diluted valuation (FDV). This ratio reveals how much of a token's total supply is already in circulation versus how much remains locked or reserved for future release.
Understanding this dynamic can help investors identify early-stage opportunities—and avoid potential pitfalls from future token unlocks. So, just how many low-circulating cryptocurrencies are there among the top 300 by market cap?
The Landscape of Circulating Supply in Top Cryptocurrencies
According to recent data from CoinGecko (as of May 8, 2024), 21.3% of the top 300 cryptocurrencies by market cap are classified as low-circulating, meaning their market cap to FDV ratio is below 0.5. In simpler terms, for every five large-cap cryptos, one still has the majority of its tokens locked or yet to be released.
Conversely, only 24.7%—or 74 out of 300—are fully diluted, meaning all available tokens have already been issued and are circulating in the market with no further unlocks expected.
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This imbalance highlights an important trend: many high-profile projects today are still in the early phases of token distribution, which can significantly impact price dynamics over time.
What Does "Fully Diluted" Mean?
A fully diluted cryptocurrency is one where all tokens—up to the maximum supply—have been minted and are available on the open market. There are no remaining locked allocations for team members, investors, or ecosystem incentives. In contrast, low-circulating tokens often have substantial portions of supply held back, which may unlock over months or even years.
For this analysis:
- Low-circulating: market cap / FDV ratio between 0 and 0.49
- High-circulating: ratio between 0.50 and 0.99
- Fully diluted: ratio exactly at 1.0
It's also worth noting that for cryptocurrencies without a max supply (like Ethereum), FDV is treated as equivalent to market cap for analytical consistency.
The Four Most Notable Low-Circulating Tokens
Among the lowest circulating tokens in the top 300, four stand out due to their recent launches and significant locked supply:
- Worldcoin (WLD) – Market Cap / FDV Ratio: 0.02
Launched in 2023, Worldcoin aims to verify unique human identity through biometric data (iris scans) and distribute digital tokens accordingly. With only 2% of its total supply circulating, WLD has one of the lowest circulation rates in the market. - Cheelee (CHEEL) – Market Cap / FDV Ratio: 0.06
A social media platform built on Bitcoin’s Layer-2 solutions, Cheelee rewards users for content creation and engagement. Despite gaining traction quickly, the vast majority of its tokens remain locked. - Starknet (STRK) – Market Cap / FDV Ratio: 0.07
A ZK-Rollup Layer-2 scaling solution for Ethereum, Starknet launched its STRK token in 2023 with a long-term distribution model. Most tokens are allocated to ecosystem growth, staking rewards, and community incentives over several years. - Saga (SAGA) – Market Cap / FDV Ratio: 0.09
Focused on modular blockchain infrastructure, Saga enables app-specific chains with shared security. Its token release schedule is designed to support long-term development and validator participation.
All four of these projects were launched in either 2023 or 2024, underscoring a broader pattern: most low-circulating cryptos are relatively new entrants.
In fact, out of the 64 low-circulating large-cap cryptos, 54 were launched between 2021 and 2024—12 in 2021, 13 in 2022, 17 in 2023, and 12 so far in 2024.
High-Circulating Cryptocurrencies: The Mature Players
While newer projects dominate the low-circulation space, older and more established protocols make up the majority of high-circulating assets.
- 162 out of 300 (54%) are considered high-circulating (ratio between 0.50 and 0.99).
- Of these, 86 (or 28.7%) are nearly fully diluted, with ratios of 0.80 or higher.
Examples include:
- Maker (MKR) – Ratio: 0.95
- Aave (AAVE) – Ratio: 0.93
- Near Protocol (NEAR) – Ratio: 0.90
These projects typically launched before 2021 and have since completed most of their vesting schedules, making them more predictable in terms of supply inflation.
👉 Compare high-circulation vs low-circulation tokens and see which might suit your strategy better.
The Rise of Memecoins Among Fully Diluted Assets
Interestingly, among the 74 fully diluted cryptos, 14 are memecoins—and most of those launched in 2023 or 2024.
Notable examples include:
- Pepe (PEPE)
- dogwifhat (WIF)
Unlike traditional projects with multi-year vesting plans, many memecoins launch with fair or public distributions and no reserved allocations, resulting in immediate full dilution. This reflects a growing trend: memecoins are becoming a recurring narrative in crypto cycles, often capturing retail investor attention during bullish periods.
Only 28 of the fully diluted cryptos were launched in the past four years—far fewer than the number of new low-circulating projects—suggesting that full dilution is now more common among speculative or community-driven tokens rather than venture-backed ones.
Average Market Cap to FDV Ratio: A Market-Wide View
Across the entire top 300 (excluding stablecoins and wrapped assets), the average market cap to FDV ratio is 0.73. This means that, on average, about 73% of each project’s total token supply is currently circulating.
However, this average masks significant variation:
- Newer projects tend to have very low ratios (<0.1)
- Older DeFi and infrastructure protocols cluster around 0.8–0.95
- Memecoins often sit at exactly 1.0
Frequently Asked Questions (FAQ)
What does a low market cap to FDV ratio mean?
A low ratio (e.g., below 0.5) indicates that only a small fraction of the total token supply is currently available for trading. The rest may be locked for team members, investors, or ecosystem development.
Why should investors care about circulating supply?
Because future token unlocks can increase selling pressure if holders decide to offload newly released tokens. Projects with large upcoming unlocks may face price volatility even if fundamentals are strong.
Are low-circulating cryptos riskier investments?
They can be. While they offer potential upside if demand outpaces supply growth, they also carry higher uncertainty due to upcoming unlocks and less transparent market dynamics.
Can a fully diluted token still grow in value?
Yes. Price appreciation depends on demand relative to supply. Even fully diluted tokens like PEPE have seen massive gains when driven by strong community momentum or speculation.
How often are new tokens being unlocked?
Unlocks happen daily across various projects—especially newer Layer-1s, Layer-2s, and AI-focused tokens. Monitoring vesting schedules is essential for informed investing.
Where can I track token unlocks?
Several blockchain analytics platforms provide unlock calendars showing upcoming token releases by project, amount, and percentage of supply.
👉 Stay ahead with real-time insights into token unlocks and market movements.
Final Thoughts
The distribution of circulating supply across the crypto market reveals key structural trends:
- Over one-fifth of top cryptos still have minimal circulation.
- Most new projects follow long-term vesting models.
- Memecoins are reshaping what it means to be “fully diluted.”
- Older protocols dominate the high-circulation segment.
As more tokens unlock in the coming months and years, understanding these dynamics will be crucial for navigating both bull and bear markets effectively.
Always conduct your own research before investing. This article is for informational purposes only and does not constitute financial advice.