Definition ∞ High token float describes a situation where a substantial portion of a cryptocurrency’s total supply is readily available for trading in the open market. This contrasts with a low float, where many tokens are locked up or held by a few entities. A high token float generally indicates greater liquidity and a reduced susceptibility to price manipulation by large holders. It promotes broader participation and price discovery.
Context ∞ High token float is frequently discussed in crypto news concerning market dynamics and the decentralization of digital asset projects. A large circulating supply can indicate a mature project with widespread distribution, potentially leading to more stable price action. However, it can also suggest reduced scarcity, which might influence long-term value perceptions. Investors often monitor token float metrics to assess market liquidity and potential investment risks.
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