Learn what Sui is, how it works, and why it's a game-changer in blockchain technology. A beginner’s guide to the next-gen blockchain.

 is a Next-Gen Blockchain for High-Speed, Scalable, and Secure Transactions. Blockchain technology is innovating quickly, and the next level is Sui (SUI). Whereas traditional blockchains have slow transaction speeds and high transaction fees, Sui has been developed for instant finality, cost-effective transactions, and an intuitive user experience.

This guide will explain Sui's operation, its unique features, and 

Sui is a high-performance decentralized layer-1 blockchain platform created by the team behind Mysten Labs, a startup founded by former Meta (Facebook) engineers who worked on the Diem blockchain project.

Object-centric storage refers to a novel data structure that supports parallel transaction execution. Sui uses it to address the inefficiencies associated with blockchains. It achieves faster and cheaper transactions, which makes Sui appealing to developers and users alike.

Unlike traditional blockchains, which handle transactions in series, Sui handles transactions in parallel. This increases network throughput while reducing network congestion.

This means no global consensus is required for simple operations (like moving a token) on Sui. Instead, it classifies transactions as simple and complex operations:

Sui Crypto Price: What Is SUI Doing Right Now?

 is approximately $1.45, and the market cap is over $2 billion. Since its launch, Sui has experienced significant growth, making it one of the most ambitious layer-1 blockchain projects in the crypto industry.

Here’s a summary of Sui’s price performance:

Sui’s price will continue to be bullish in the lead-up to increasing adoption and ecosystem growth.

(Note: Prices may vary from market to market. For the latest Sui price, visit Zoomex for real-time updates.)

Purchasing SUI tokens is straightforward, and they are available on several exchanges. Here’s a step-by-step guide:

, use a reputable crypto exchange such as Zoomex, which guarantees secure transactions and low fees. Once you have made a note of the information you will use.

Create an account on Zoomex and complete KYC (Know Your Customer) verification to unlock full trading features.

Deposit your USDT, BTC, or any other asset your account supports.

After joining, navigate to the trading section and look for the SUI/USDT pair.

If you plan on holding your SUI tokens long-term, transfer them to a non-custodial wallet like Sui Wallet or Ledger.

Sui is not just another blockchain; it brings revolutionary innovations that make it the fastest, cheapest, and most scalable blockchain compared to Ethereum and Solana.

Sui is about to become a massive player in the decentralized technologies ecosystem as it receives powerful support from VC firms and growing developer interest.

Sui’s low-cost transactions, scalability, and innovative technology make it arguably the most exciting next-gen blockchain to join the Web3 landscape. For traders, investors, and developers alike, 

For those interested in acquiring SUI tokens, 

 is the best exchange to support this, offering secure trading, low fees, and access to Sui's newest advancements.Trade SUI on Zoomex now and join the blockchain movement.

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What is Sui? A Beginner’s Guide to the Next-Gen Blockchain

Discover why stablecoin staking yields are low and its risks, and explore alternative strategies like yield farming and crypto savings accounts on Zoomex

Digital currencies have made it discoverable that stablecoins are a great investment opportunity for investors seeking refuge from electronic money's uncertainties. This type of cryptocurrency is pegged on stable assets such as the US dollar to maintain consistency. The most attractive feature of stablecoins is staking, which represents the opportunity to earn interest on one's assets. Unfortunately, however, actual stablecoin staking is quite disappointing. This article explores why stablecoin staking is inefficient and what else investors may use instead. An example is presented on the Zoomex platform.

Imagine sending your funds to the network to confirm transactions and earning a small reward - this is the core of cryptocurrency staking. Its case is analogous to stablecoins, although their staking looks less impressive.

Staking is 'locking' a specific amount of cryptocurrency within a wallet and letting it support operations within a blockchain network. As a reward for such a service, one benefits from issuing rewards, often in the form of more tokens. Using this definition, stablecoin staking would use stablecoins to acquire a reward or interest. 

The beauty of this process lies in the promise of generating passive income with reduced risks associated with the more unstable cryptocurrencies.

The fact remains that stablecoin staking often proves challenging and offers specific restrictions, which may damage investments.

The big drawback of staking stablecoin is that it might have relatively low yields. Traditional cryptocurrencies- mostly the high-volatility ones- are very rewarding in terms of staking because of their volatile pricing. By contrast, stablecoins tend to have a steady value and thus lead to relatively lower returns on investment than their cousins, who are known for their dramatic ups and downs.

For instance, CoinGecko and CoinMarketCap report yields for stablecoins like USDC and DAI to typically fall in the range of 2% to 10% across platforms and markets. In contrast, yields from volatile cryptocurrencies- staking rewards often give percentages much more significant than 20% and sometimes have reached over 50% based on specific market conditions.

Thus, investing in stablecoins may not be the best choice for those looking for a good return. It may instead be more relevant to the individual seeking stability and lower risks in his investment portfolio.

Most staking platforms for stablecoins rely on DeFi protocols that use smart contracts for trading. Smart contracts automate processes and reduce intermediary involvement but are not synonymous with risk-free means. Bugs or vulnerabilities in intelligent contracts lead to fund losses. This risk concerns stablecoin holders, especially the capital preservation interest group.

Multiple stablecoins, especially those that are centrally pegged, raise issues in terms of power and clarity. For example, if the stablecoin issuer comes under regulatory scrutiny or goes insolvent, then the value of the underlying stablecoin is called into question. Further staking such stablecoins leaves the investor open to centralization risks, nullifying the principal factors why most crypto enthusiasts favor decentralized projects.

 regulatory landscape is constantly evolving. Because stablecoins hold the perceived potential to impact the traditional financial system, regulating bodies are on a high-scanning spree for their existence. Uncertainty of compliance and regulation may make stablecoin staking an adverse environment for risk-averse investors who opt for this option.

While stablecoins are pegged to fiat currencies, the truth is that fiat currencies, by design, are subject to inflation. High inflationary trends result in an extended lockup in stablecoins, eroding one's purchasing power. A potential exclusion from other gains from other high-risk, high-reward investments can occur. This accounts for the opportunity cost of locking up stablecoins for staking higher than the gains.

The rapidly growing popularity of stablecoins has resulted in many staking platforms, creating oversupply in the market. Higher supply can cause yields under stake to suffer from reduced staking incentives, making it increasingly challenging for investors to find the right spot. More diminutive rewards offered by competition-scrapping platforms might further diminish the appeal of stablecoin staking.

As staking of stablecoin has limitations, investors may use other investment techniques to gain passive returns or to leverage their portfolio returns. Some of the promising alternatives are as follows:

Yield farming refers to liquidity in decentralized finance protocols in exchange for interest or rewards. Investors can also stake stablecoins on DEXs' liquidity pools and earn a fraction of the transaction fees generated from other investors' transactions. This inherently carries risks but tends to pay higher yields than traditional stablecoin staking.

Other riskier investors like investing in volatile instruments such as cryptocurrencies due to their higher growth chances. Such investments are generally always exposed to risks, but traditional market-winning trends can sometimes achieve successful profits. Even minimal proportions of the investment portfolio in such high-risk holdings create possibilities to compensate for losses from stablecoin investments.

Other exchanges have introduced interest-bearing crypto saving accounts that earn interest on cryptocurrencies without staking. These accounts lend funds to institutional borrowers and return the interest gained from lending to the account holders.

Such traditional investments do not necessarily signify complex staking processes but allow investors to reap still passive income generated in such investments.

If stability is required, then bonds, stocks, or other traditional vehicles can provide choices. Such alternatives are likely less exciting than those offered by cryptocurrencies, but established frameworks and regulatory oversight help reduce risks.

Another source of investment is the opportunity for a token launch or ICt; hence, investors can invest early in promising projects and benefit from the appreciation in price once the project takes off. Of course, this investment strategy is fraught with risks because several projects will fail.

Stablecoin staking is an intriguing passive income channel in the crypto universe. However, it has narrowed limits and risks, making it less effective than initially thought for people focused on stable returns; a lot more can be gained through yield farming, cryptocurrency savings accounts, ts, or diversification into more volatile assets.

Among all the innovative solutions for crypto investors available on different platforms, 

 is one of the finest trading interfaces. We have premium-level advanced trading features and real-time market analysis, including hundreds of cryptocurrencies. Thus, it will help investors tackle the intricacies of the crypto market efficiently, maximize all possible opportunities, and reduce all risks involved. As the land of cryptos continues to evolve and explore various strategies and platforms, it will become crucial to succeed in investments.

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Stablecoin Staking: Why It Doesn't Work and What Are the Alternatives?

DeFi Yield Farming explained: Explore how it works, its benefits, and its risks in this beginner-friendly guide to earning rewards in decentralized finance.

Yield farming is acknowledged as one of the newest phenomena that allows passive money to be earned from digital assets. Another way to define yield farming in decentralized finance is by helping holders provide decentralized systems with liquidity so they can earn rewards. This indirectly means one gets a superior yield as a holder by lending liquidity to a decentralized system. Here is a comprehensive beginner's guide that will help bring some perspective on how DeFi 

works, why it is so popular, and why investors and traders alike have taken to it.

 is a process of generating rewards by offering liquidity to decentralized platforms. This is the most literal concept: you lend your crypto assets to a certain DeFi protocol or liquidity pool, while rewards for that particular reason usually include additional cryptocurrency tokens. These are generated by the fee paid by other users of the platform as well as native tokens that are distributed by a protocol itself. This will give you passive income while helping the growth and liquidity of DeFi networks.

This is a real-life form of farming, except you are farming your crypto instead of crops. Crypto-yield farming tries to earn rewards from your crypto without selling or constantly engaging with the market.

, users must lock in liquidity assets into decentralized platforms or exchanges. Here is how it works:

 stunning because it allows people to passively earn money from their crypto, which they do not necessarily need to trade or follow at all times.

Several ways exist to participate in DeFi yield 

, each offering different rewards and growth opportunities.

is among the most enticing investment strategies crypto holders usually adopt. A few of these benefits are discussed below:

 can be a rewarding investment. However, there is always risk in DeFi protocols, and not all platforms have undergone reputable audits. Despite the volatility and impermanent loss risks, the higher reward is quite an incentive.

Still, for people ready to assume the risk of yielding a reasonable return, farming yields become one of the good opportunities with potential returns for any crypto asset holder. Exploring platforms and trends is what research might do, giving yield farmers a window in which they position themselves as benefiting from a burgeoning space DeFi.

 is indeed a very interesting opportunity for cryptocurrency holders who can generate passive income and increase returns on investment. A small percentage of providing liquidity or staking is rewarded with no active trade involved; its significant returns, great diversification possibilities, and access to innovative DeFi systems have made yield farming one of the most popular ways of making your crypto assets work for you.

, you must research properly and select the best platforms. As the DeFi space grows, the possibilities for yield farming will continue to increase, making this strategy valuable for any crypto investor. 

 is the best platform for staying updated and investing in crypto.

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What Is DeFi Yield Farming? A Simplified Guide for Beginners

Learn what gas fees are in crypto and how they impact blockchain transactions. A beginner-friendly guide to understanding crypto transaction costs.

A big thing for a beginner to understand when stepping into cryptocurrency is the fees. This article will give you simple knowledge on comprehending and navigating transaction markets on highly reputed blockchains like Ethereum.  By the end, you will not only know 

'What is the best time for ETH gas fees?'

 and 'What do transaction chains entail?' but also 'When are ETH gas fees likely to drop so you can lessen the cost of transactions?'.

The gas fee is a cryptocurrency transaction fee paid to process transactions on a blockchain network. It is paid to the miners/validators who try to verify a transaction and then officially record it on the blockchain network.

Every blockchain sets gas fees differently, with Ethereum (ETH) leading the way in using gas charges. Gas is essential for any network operation, including transferring tokens, interacting with dApps, and calling smart contracts.

Gas fees are necessary because validators (miners/stakes) must be incentivized to process and verify transactions accordingly. Validations are decentralized and do not adhere to one central authority watching over transactions. Gas fees compensate validators for the resources consumed in validating the transaction, including processing power, time, etc.

Without gas fees, the system could be prone to abuse and network congestion, potentially undermining the integrity of the blockchain. This is why we emphasize that gas fees play a crucial role in maintaining a safe and efficient network, ensuring the reliability of your transactions.

Generally, the amount one pays in gas fees is derived from two values: gas price and gas limit.

The gas price is the amount you specify you are willing to pay per unit of gas. Gas prices are usually quoted in Gwei, an ETH subunit. They fluctuate depending on the number of blocks available or occupied. The demand for transactions is normally directly proportional to the number of blocks, and congestion leads to a gas price hike, making sending more expensive.

Gas Limit refers to the maximum amount of gas you wish to use in your transaction. Because of the processing power involved, a simple send operation in ETH would require a lower gas limit than complex smart contract executions.

You can automatically reduce the amount of gas necessary to execute activities and offer a gas price and cap when wallets initiate the transaction. Meanwhile, you can increase or decrease these figures to value speed and efficiency.

A time when the least gas is used best suits when the Ethereum network is relatively less congested, usually during off-peak hours. However, gas fees typically vary, depending on the time of day and the overall user engagement with the network. For example, the high demand for applications in the decentralized finance (DeFi) sector, non-fungible tokens (NFTS), and large updates within Ethereum can cause huge spikes in gas fees.

The rates vary throughout the day but are usually the lowest. These are typically late into the night when most consumers in the main markets (e.g., the U.S. and Europe) sleep. At the time, the smaller the number of operations related to the ETH network, the lower the gas price-for-the-money possibility and speed of the transactions happening.

Many existing tools, including ETH Gas Station or Gas Now, enable users to interact with real-time gas price tracking to determine the best time to send transactions. These are the tools that provide average gas prices for a transaction, allowing possible insights towards figuring out when it's cheaper to send ETH.

Several factors influence gas fee prices, including:

Network congestion occurs when more users interact with the blockchain (e.g., during major DeFi events or NFT launches). This increases the demand for transaction processing and leads to higher gas fees. Conversely, when there are fewer transactions, gas prices tend to decrease.

 Some wallets and decentralized applications automatically suggest gas fees to users. You can choose a lower gas price and wait for your transaction to be processed or pay a higher cost for quicker processing.

Upgrades meant to improve scalability and transition Ethereum from proof-of-work consensus mechanisms to proof-of-stake, thus helping reduce fees. Ethereum 2.0, called the Ethereum Merge, will lower gas costs shortly.

While some decentralized applications are related to DeFi, these and other dApps strain the Ethereum network, resulting in high fees.

You will be monitoring dApp activity if you plan your transactions.

To steer clear of being under the weight of high fees due to gas, the following advice applies to users:

Layer 2 solutions, such as Optimism and Arbitrum, are built to offer scalability off-chain and considerably reduce gas costs. These solutions work by processing transactions off the Ethereum main net, drastically reducing the amount of gas paid. This is a popular strategy for reducing gas fees, especially during high network congestion.

 One way to accomplish this is to use real-time tools that track your gas usage. Analyzing when low-cost times can be scheduled ensures that your congestion is minimal or off-peak.

Some users utilize gas tokens, such as Chi Gastoken, to lower the cost of gas when congestion is high. Gas tokens allow users to buy gas in advance when the prices are low and redeem it during peak times. This may be especially useful to those who want to lock in lower gas prices for future transactions.

Certain wallets, like Metamask or Trust Wallet, allow users to modify their gas fees. While sending a transaction through these wallets is generally less costly, the downside is a longer wait time. Traders who wish to control their gas fees and are prepared to give up speed for savings typically use those wallets.

Gas fee optimization can save average crypto users more often, especially when speaking of those trading on Ethereum or doing DeFi or NFT interactions. Knowing how to navigate through the gas fees for ETH at any given point and when to use a low-cost alternative like Layer II can help you significantly minimize your transaction.

Gas fees, of course, are an important feature of the Ethereum network that upholds integrity and security in blockchain transactions. The future of Ethereum, on the other hand, along with all the newness like Ethereum 2.0, means lowering gas fees and improving scalability. Until then, being conscious of when ETH gas fees go low, using optimization tools, and utilizing Layer II solutions are great steps toward a cost-effective transaction for a smooth crypto experience. Also, we have learned about

 can provide helpful features that reduce transaction fees, ensuring users pay as little as possible while interacting with the crypto market. Optimizing your gas fees maximizes your investment and saves substantial amounts in the long run.

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What Are Gas Fees in Crypto? A Beginner’s Guide to Understanding Blockchain Transaction Costs

Discover Lido, a liquid staking solution for Ethereum, enabling users to stake ETH and earn rewards while maintaining liquidity in the ecosystem.

The company's demand for effective staking solutions has significantly increased since the entity evolved into Ethereum 2.0, a consensus mechanism through Proof of Stake. Lido (

) is at the forefront of all decentralized staking protocols, working to make it easy to stake Ethereum and, in general, other blockchain networks. 

, how the Lido service works within the Ethereum ecosystem, and why such a platform is particularly useful for interested users seeking high-quality, reliable staking options.

Lido is a liquid staking solution where users can stake their assets without locking up cryptocurrency or associated infrastructure. This allows one to gain rewards from staking in markets while making trades or using the staked asset in DeFi applications.

LDO, being the governance and utility token, would play an important role in the operation and decision-making of Lidos.

made staking easy, intuitive, and accessible for all users-both beginners and professionals.

Lido streamlines staking for customers by combining their deposited funds and locking them in a group of professional validators. Here's how it works:

When users lock in their ETH (or other supported cryptocurrencies) through Lido, they obtain stETH tokens as a receipt for their staked ETH. The tokens represent your locked assets and can be used in many DeFi applications to add liquidity and flexibility to the staking process.

Lido disperses your staked funds across multiple professional validators, ensuring their safety. It reduces the risks of centralization and single points of failure.

Rewards from staking are calculated and distributed daily as increased balances in stETH, meaning your rewards are automatically included in your holdings.

Lido swap connects with DeFi interfaces, allowing users to trade, lend, or leverage their strengths. A user can even swap stETH for ETH and vice versa.

Now that Ethereum has moved to PoS, staking has become the core network security method. The problem, however, with traditional staking is that one has to lock up 32 ETH — a rather big number for most investors. 

solved this by enabling users to stake any amount of ETH and get liquid staking tokens.

The stETH token issued by Lido offers several advantages:

Traders can liquidate stETH on DEXs such as Uniswap or Curve Finance.

stETH tokens earn rewards daily based on the actual staking reward the underlying assets generate.

Unlike traditional staking, this stETH token allows users to maintain liquidity while engaging in other DeFi activities.

Unlike Ethereum's traditional staking process, Lido allows users to stake any amount of ETH for staking purposes.

Reward distribution is seamless because staking rewards are automatically distributed daily and appear in the balance of the user's stETH.

This integration with DeFi platforms enables users to achieve maximum utility from their staked tokens.

Lido uses a decentralized validator network to secure funds, which means the slashing risk is as low as possible.

 is a platform that offers liquid staking across various blockchain networks like Ethereum, Solana, and Polygon. It has earned the trust as a decentralized infrastructure with governance, thus offering the perfect solution for staking enthusiasts.

Improved Liquidity: Lido gives liquidity to the staked assets by providing stETH, enabling users to utilize their holdings in DeFi.

No need for expensive hardware or a 32 ETH minimum requirement.

: Users can earn staking rewards without affecting their trade capacity or investment in DeFi opportunities.

makes it easy and rewarding for users to stake ETH or other cryptocurrencies.

As of January 2025, here are the important metrics of the Lido ecosystem.

 Over $14 billion across Ethereum, Solana, and Polygon networks.

Active on major DEXs like Uniswap and Curve.

For live updates and staking opportunities, platforms like Zoomex provide real-time analytics and trading tools for LDO tokens.

Lido (LDO) makes staking on the Ethereum platform more accessible, flexible, and rewarding. Through seamless DeFi integrations, liquid staking has blessed users by providing them with the best of both worlds: rewards from staking and liquidity. 

 is a friendly and secure Ethereum and other asset staking for seasoned crypto users and new investors.

As Ethereum continues to advance, Lido's function in streamlining staking and expanding DeFi opportunities will grow. Participate in

 for rewards and towards decentralization and security of blockchain.

With real-time updates and competitive rates, 

 will be your best partner and guide you through this dynamic crypto-staking world. Zoomex provides the necessary tools and analytics to make smart decisions about buying or trading your LDO tokens safely and effectively.

What is Lido, and how does it work in the Ethereum ecosystem?

Learn the basics of Dollar-Cost Averaging (DCA) in this beginner's guide and discover how to invest smarter with less risk over time.

Cryptocurrency and traditional market volatility can make investing so overwhelming. Enter the reliability of Dollar-Cost Averaging, or 

, a strategy that makes investing simple and incredibly minimizes risks of market timing. Here is what DCA means in crypto, how it works, and why it may be the smart choice for beginner and seasoned investors.

Dollar-cost averaging is a form of investing strategy in which a large lump sum is invested over a period as small, repeated purchases. This contrasts an all-at-once investment at the prevailing price, whose amount is already known and implemented simultaneously.

In crypto markets, price volatility dictates when traders buy their coins; when the price is low, they buy more, and when the price is high, they buy less. Thus, the purchase cost will be smooth over time. This is the easiest explanation of 

How does a dollar cost average look in a graph? Let's see an example to work it out:

Consider committing $100 a month to investing in Bitcoin for six months.

At the end of six months, you would have invested $600 and bought 0.03062 BTC at an average cost of $19,588 per Bitcoin, cheaper than some of the monthly individual prices.

This approach saves you from investing a big amount at the peak time of the market.

How Does a Dollar-Cost Average Look in a Graph? 

investment graph generally portrays steady investment growth over time. In contrast, a lump sum investment graph often shows drastic value spikes or dips.

If the market is very volatile, the DCA graph will tend to be smooth, indicating continuous investments at varied price levels.

On the other hand, massive swings are normally seen in a lump sum investment graph, which depends on the time when one invested.

When prices decline, your steady investment purchases more assets, lowering the average price.

The chart illustrates steady growth when prices increase, as the earlier investments were made at lower prices.

Yes, DCA is a risk-averse strategy for investors. Studies have shown that it outperforms lump-sum investing during periods of high market volatility.

A hypothetical DCA strategy applied to Bitcoin during the 2022 bear market:

Investing $100 monthly from January to December resulted in a 15-20% portfolio growth by early 2023 despite the year’s overall negative sentiment.

You’re not tempted to buy high during euphoria or sell low during panic.

 Markets are unpredictable, and DCA ensures you’re always in the game.

 Regular investments encourage a systematic approach to wealth building.

 is yes. Whether new to crypto or looking to invest in traditional markets, DCA is a reliable way to navigate uncertainty.

However, DCA needs to be paired with realistic expectations. More Important Considerations:

Historical analysis shows that DCA into Bitcoin since its inception would yield an average annual ROI of 230%.

For Ethereum, a similar DCA strategy from 2017 to 2023 averaged a return of 130% annually.

 Platforms like Zoomex have auto DCA, which enables users to schedule recurring investments in Bitcoin, Ethereum, and several other cryptos automatically.

Decide on an amount you will invest at an assigned interval, such as weekly or monthly.

You can stick to the big two—Bitcoin and Ether—or diversify into some promising altcoins.

Monitor Performance: DCA decreases the burden of monitoring as much as possible yet periodically monitors the portfolio and corrects it according to changes in the market.

As one of the most popular cryptocurrency platforms, Zoomex renders DCA approachable for new and old users of all proficiency levels.

on Zoomex to ensure that the investment experience goes smoothly and that security is intact throughout the journey.

Future of dollar-cost averaging in Crypto

Given the maturing crypto market, DCA becomes one of those cornerstone strategies every investor will adopt:

Dollar-cost averaging is a strategy that has endured. Investing fixed amounts at regular intervals reduces risk, steadily builds wealth, and allows for navigation through market uncertainty.

accessible and efficient, offering the tools and insights necessary for successful investing. And with the rapidly evolving crypto market, DCA will remain one of the smarter options for anyone looking to invest responsibly.

What is Dollar-Cost Averaging? A Beginner’s Guide to Smart Investing

Learn what FDV means in crypto with our beginner's guide to Fully Diluted Valuation. Understand its importance for evaluating cryptocurrency projects.

The whole crypto world is backed with various terms that often leave beginners needing clarification. However,

 is one of the jargon mostly thrown around; it means a concept that is used to value a little cryptocurrency. Since this differs from regular market capitalization, one must know what FDV means in crypto to understand the investment worth of crypto assets. This blog aims to open the mystery of what FDV means in crypto, the gaps between 

, and why FDV again becomes an important metric.

Fully diluted valuation, likewise known as FDV in cryptos-copy, provides the full value of a cryptocurrency, assuming all potential coins or tokens are issued and sold at the current market price. This presumes a valuation based on the prediction that there will someday be enough coins available to mint all the possible coins. 

FDV = Current Token Price × Total Token Supply (including locked or unissued tokens)

If a cryptocurrency has a current price of $2 and a maximum supply of 1 billion tokens, its FDV would be $2 billion.

FDV provides investors with an idea of the future value a cryptocurrency may be able to generate if all tokens were in circulation.

are related, they differ in the scope of tokens considered:

Calculated as Current Price × Circulating Supply.

Gives the value of tokens currently present in the market.

Suppose a cryptocurrency has a circulating supply of 500 million tokens at $2 each, then its market cap would be $1 billion.

Consider the full token supply, including locked-in vesting schedules or those that still need to be issued.

Shows the potential market size when all tokens are available.

The FDV would be $2 billion if the same token price of $2 were used and there were a total supply of 1 billion tokens.

FDV helps forecast the potential valuation of a cryptocurrency if all tokens are issued. It is an important tool for investors to compare different projects based on total supply.

The high number of tokens yet to be issued, as inferred by the difference between market cap and FDV, indicates inflationary pressure on the token price that may affect returns.

Understanding FDV illuminates the token distribution mechanism, such as the number of tokens allocated for development, marketing, or staking rewards.

An FDV much higher than the market cap might signal overvaluation, as the token's current value assumes unrealized growth.

In 2024, many top cryptocurrencies demonstrated significant differences between their market cap and FDV, reflecting varying token issuance mechanisms:

FDV: $625 billion (close to its market cap due to a predictable supply schedule).

FDV: $470 billion (slightly higher because of staking rewards).

Many newer tokens present an FDV 2x or 3x higher than their market cap, which increases the risk of dilution as the tokens are issued.

Benefits and Drawbacks of the Application of FDV in Crypto Analysis

 Provides a full-scale view of the potential size of a project.

This helps investors understand if the growth of the token matches the supposed supply.

This warns against the risks of token release schedules.

FDV can overestimate value in cases where projects do not deliver.

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