How does the percentage of float affect the price of digital currencies?

1 answers

• Dharmveer SinghAug 31, 2023 · 2 years ago
  The percentage of float is an important factor to consider when analyzing the price of digital currencies. It refers to the proportion of a cryptocurrency's total supply that is available for trading in the market. When the percentage of float is low, it means that a large portion of the total supply is held by a small number of holders, which can create scarcity and drive up the price. Conversely, when the percentage of float is high, it indicates that a larger portion of the total supply is available for trading, which can result in increased selling pressure and potentially lower the price. It's worth noting that the percentage of float is not the only factor that affects the price of digital currencies, and other factors such as market demand, investor sentiment, and overall market conditions also play a role.
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