Though Author’s LIT token has not but begun public buying and selling, the market is already drawing a pointy line over its valuation after Tuesday’s airdrop.
Merchants are divided on whether or not the Ethereum-based Layer 2 decentralized alternate (DEX)’s new governance token deserves a totally diluted valuation nearer to $2 billion or nearer to $3 billion.
Totally diluted valuation (FDV) estimates the whole market worth of a token if all tokens have been issued and circulated by multiplying their value by the utmost doable provide.
Based on CoinMarketCap, pre-market buying and selling has LIT round $3.20, suggesting FDV will exceed $3 billion, however prediction markets are telling a extra cautious story.
Latest low-float launches similar to Monad, EigenLayer, and Motion have ballooned headline valuations into billions of {dollars} at the same time as most tokens stay locked, making FDV serve much less as a proxy for actual demand and extra as a forward-looking estimate that may simply be distorted with out shut consideration to liquidity and tokenomics.
At Polymarket, merchants see an virtually even probability that LIT will surpass a totally diluted valuation of $3 billion the day after its launch, however market information reveals that these lofty value targets have collapsed after the October crash, dampening hopes for a $4 billion or $6 billion consequence.
By comparability, Hyperliquid’s HYPE token debuted final November with an FDV of roughly $4.2 billion.
Lighter’s common each day perpetual buying and selling quantity over the previous week was about $2.7 billion, rating it behind Hyperliquid and Aster, in response to Dune information.
