GRASS Token project, part of the DePin (Decentralized Physical Infrastructure Network) sector, has officially commenced trading on several exchanges following its recent airdrop.
Despite facing selling pressure post-airdrop, the GRASS token briefly surpassed the $1 mark, resulting in a significant increase in trading volume.
GRASS Token Sees Price Surge
Initially trading at approximately $0.73 before listing, GRASS saw its price rise from a low of $0.65 to a peak of $1.10 during official trading hours. This surge indicates a fully diluted valuation (FDV) for the Grass project exceeding $1 billion, reflecting strong market sentiment.
Understanding Fully Diluted Valuation (FDV)
FDV represents the total market value of a cryptocurrency project when all tokens, including those not yet released, are considered. Though the price later dipped to $0.87, it remained above pre-listing levels, suggesting investor optimism for this newly launched token.
Data from CoinGecko reveals that Grass is currently experiencing higher daily trading volumes than prominent tokens like Bitensor (TAO), Filecoin (FIL), and I/O. With nearly $225 million in transactions, GRASS now holds the title for the highest trading volume in the DePin market.
Concerns Over Circulating Supply
The monthly token distribution plan indicates that 25% of the total supply of one billion GRASS tokens is intended for circulation initially. However, a new calculation by a community investor suggests that the actual circulating supply may be lower than this figure.
A user on platform X stated, “The actual circulating supply of GRASS is around 5-6%, not 25%. About 10% is allocated for the first airdrop, with nearly 50% already claimed. Claims remain open until mid-January. Another 10% is reserved for network rewards, staking, and future airdrops, which will be released linearly over the coming years. Additionally, 1.37% is set aside for foundation uses such as listings and liquidity pairs. Therefore, the actual liquid supply is currently around 5-6%.”
Recent statistics from Tokenomist also indicate that projects with high FDV and low circulating supply may pose long-term investment risks. According to their report, “Projects with low circulating supply but high FDV can represent significant risks for investors looking for long-term growth.”
Long-term Release Pressure
Data from CryptoRank shows that the linear release process for Grass tokens will continue until 2028. From now until October 28, 2025, 0.01% of the total supply, equivalent to 146,200 GRASS tokens, will be released daily, potentially exerting long-term selling pressure on the token’s price.
The Grass project is developed by Wynd Network, where active users can earn GRASS tokens by sharing their internet resources through a browser extension. This innovative model aims to incentivize resource sharing while contributing to the decentralized infrastructure landscape.
As the market continues to evolve, investors will need to keep a close watch on the implications of token supply dynamics and overall market sentiment surrounding GRASS.
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