Analyst Note: Market Cap and FDV

Market caps are important while making investment decisions. They are the “odds” at which an investment decision is valued. A high market cap also fundamentally improves the business through reflexivity. In crypto, there is no clear definition of market caps. Currently used fully diluted valuation (FDV) and circulating market cap have limitations and do not fully capture all the nuances of market cap. This report proposes that the true market cap of a protocol is its fully diluted valuation, less the value of supply held in its treasury.

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