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  1. Home
  2. /Glossary
  3. /Low Float
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Low Float

When only a small percentage of a token's total supply is circulating in the market.

Definition

When only a small percentage of a token's total supply is circulating in the market. Low-float tokens can pump easily because there are few tokens to buy, but they often crash hard when large unlocks hit. Many VC-backed tokens launch with low float and high FDV, which has drawn criticism.

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Related Terms

Circulating Supply

The number of tokens currently available and tradeable in the market.

Fully Diluted Valuation (FDV)

A project's theoretical market cap if all tokens were in circulation.

FDV to Market Cap Ratio

The ratio between a token's fully diluted valuation and its current market cap.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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