Binance Enhances Token Information Methodology for Greater Transparency – BitRss

Binance has announced an update to its token information methodology, aiming to provide a more transparent and comprehensive view of market capitalization and circulating supply. This change incorporates token unlock schedules, offering users a clearer understanding of the potential market dynamics.

The new methodology distinguishes between market cap and unlocked market cap. Market cap refers to the value of tokens currently circulating, calculated by multiplying the circulating supply by the current market price. Unlocked market cap, on the other hand, includes the value of all tokens that can be circulating, even those unlocked but not yet publicly available for trading.

Understanding the New Metrics

With this update, Binance introduces a distinction between circulating supply and unlocked circulating supply. Circulating supply represents the number of tokens that are publicly accessible and actively traded. Unlocked circulating supply includes tokens that are unlocked and could enter circulation based on project release schedules.

This differentiation helps users better understand the supply-and-demand mechanics of a token, allowing them to anticipate potential impacts on price and liquidity. By including non-public holdings that are tradable when information is available, Binance aims to improve the accuracy and usability of token data for better-informed trading decisions.

Why Binance Is Implementing This Change

Binance’s priority is to provide users with actionable, transparent, and meaningful data that enhances their decision-making process. By incorporating token unlock schedules, Binance offers traders and investors a more realistic assessment of an asset’s valuation beyond what is currently in public circulation.

Users will be able to view token unlock schedules directly on Binance, making it easier to track future supply changes. This approach allows for more accurate market valuations by including unlocked, but non-publicly traded, holdings. As a result, users can make better-informed trading decisions based on a clearer picture of an asset’s capitalization.

Moving forward, users will notice an updated display of market cap and circulating supply data across Binance’s token information pages. When token unlock data is available, it will be reflected in the new market cap and circulating supply metrics. If this data is unavailable, non-publicly accessible tokens will remain excluded from calculations.

For more details on this update, visit the official announcement here.

Why This Matters: Impact, Industry Trends & Expert Insights

Binance has updated its token information methodology to enhance transparency by incorporating token unlock schedules, offering users a clearer view of market dynamics.

Recent industry reports indicate that significant token unlocks, totaling over $3.13 billion, are expected in February 2025. This aligns with Binance’s efforts to provide a more comprehensive understanding of market capitalization and circulating supply, helping users anticipate potential impacts on price and liquidity.

As per insights from OneSafe, Binance’s updated token unlock schedule, extending the lock period to at least one year, aims to enhance liquidity and transparency. This supports the impact of Binance’s transparency update, which seeks to improve user experience and market trust by offering detailed unlock schedules.

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