Binance Enhances Token Transparency with Upgraded Market Cap Methodology

Key Takeaways:Binance updates token data methodology to include token unlock schedules, offering more transparent market capitalization metrics.Introduction of Unlocked Market Cap, differentiating tradable circulating supply from future unlocked tokens.Users can now track token unlock schedules directly on Binance’s platform for better-informed trading decisions.Why the Change?Traditional market cap calculations do not account for future token unlocks, potentially misleading investors about supply dynamics and price behaviour. Binance’s new methodology bridges this gap by introducing:Market Cap (Old Methodology)Value of only the currently circulating tokens.Formula: Circulating Supply × Current Price.Unlocked Market Cap (New Methodology)Value of all unlocked tokens, including those not yet publicly traded.More accurate for assessing future supply impact on prices.Circulating Supply vs. Unlocked Circulating SupplyCirculating Supply: Tokens are publicly available and tradable.Unlocked Circulating Supply: Tokens unlocked but not yet on the market.How This Benefits Binance UsersClearer Valuation: Investors get a realistic understanding of a token’s true market cap.Informed Trading: Users can anticipate future supply changes impacting price and liquidity.Improved Transparency: Binance provides direct access to unlock schedules for listed tokens.Where to Find It?Updated market cap and circulating supply data on Binance’s website and app.Token unlock schedules are displayed directly to help traders track future supply changes.Final Thoughts- Binance’s commitment to transparency ensures users stay ahead in the evolving crypto landscape.- With enhanced market data, traders can make smarter, data-driven decisions.- Stay tuned for more innovations as Binance continues leading the industry in actionable crypto insights. 🚀