What is the definition of free float in the context of cryptocurrency?

1 answers

• Dec 15, 2021 · 3 years ago
  In the context of cryptocurrency, free float refers to the number of coins or tokens that are available for trading on the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not accessible for trading. The free float plays a significant role in determining the market value of a cryptocurrency. A larger free float generally indicates a more liquid market, which can attract more buyers and sellers. This increased trading activity can potentially drive up the market value of the cryptocurrency. Conversely, a smaller free float may result in a less liquid market, which can lead to higher price volatility and potential market manipulation. Therefore, understanding the concept of free float is essential for investors and traders to assess the market dynamics and make informed decisions.
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