Circulating Supply Distribution

Circulating supply distribution refers to the breakdown of how tokens are allocated among various participants, including the founding team, early investors, the public, and treasury reserves. This distribution is usually defined by a vesting schedule that dictates when tokens become liquid and tradable.

Analyzing this distribution is crucial for predicting potential sell pressure as lock-up periods expire. A well-balanced distribution suggests a healthier ecosystem with aligned incentives, whereas a heavily skewed distribution towards early insiders can create long-term selling pressure.

It is a foundational aspect of fundamental analysis for any tokenized asset.