Token Float

Definition ∞ Token Float refers to the portion of a digital asset’s total supply that is readily available for trading in the open market. This amount excludes tokens held by the project team, locked in smart contracts, or otherwise restricted from immediate circulation. A smaller token float can lead to higher price volatility due to limited supply, while a larger float generally indicates greater liquidity. It is a measure of market accessibility.
Context ∞ Crypto news often analyzes Token Float when discussing the liquidity and potential price movements of specific digital assets. Projects with a tightly controlled float might see different market reactions compared to those with a widely distributed supply. Understanding the float helps investors assess the true availability of tokens for buying and selling, influencing investment strategies.