What is Tokenomics? (Supply, Market Cap, Utility)

Summary

Tokenomics is the economic model of a cryptocurrency. CoinGecko explains the key metrics: total supply, circulating supply, max supply, market cap, fully diluted valuation, inflation/deflation mechanisms, and how to evaluate a token's fundamentals.

Key Concepts

Things To Remember

• Market cap = price × circulating supply. FDV = price × max supply.
• Tokens with large unlocks scheduled can create selling pressure.
• A low circulating supply with high FDV can indicate future dilution.
• Utility tokens need real use cases to sustain demand long-term.

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