What factors should I consider when analyzing a project's market cap in relation to its supply?

  • Market cap, calculated as current price multiplied by circulating supply, provides a snapshot of the project's market valuation. It’s important to contextualize this with the total and circulating supply.
  • A low market cap with a large potential supply can suggest room for growth, but also potential dilution risks. Conversely, a high market cap with a limited supply might indicate maturity but could also limit upside potential.

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