What factors contribute to the calculation of fully diluted market cap for a digital asset?

1 answers

• Dec 06, 2021 · 3 years ago
  When it comes to calculating the fully diluted market cap for a digital asset, there are a few key factors to consider. First and foremost, the total supply of the digital asset plays a significant role. This refers to the maximum number of coins or tokens that will ever be in circulation. The circulating supply, which represents the number of coins or tokens currently available in the market, is also taken into account. Additionally, the price per coin or token is a crucial factor in the calculation. By multiplying the circulating supply by the price per coin or token, we can determine the market cap. It's worth noting that fully diluted market cap also considers any potential future increases in supply, such as through mining or staking rewards. By considering these factors, we can accurately calculate the fully diluted market cap for a digital asset.
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