On October 23, Meteora's MET token launched on Solana, with nearly half of its total supply in circulation from the start. This distribution strategy raises crucial questions about the project's initial valuation. Major platforms like OKX have confirmed the listing, potentially impacting price action in the opening hours of trading.
Meteora’s Token Generation Event stands out with a particularly aggressive distribution approach. Out of a total supply of one billion MET tokens, 480 million will enter circulation on October 23, representing almost 48% of the total supply. This proportion is significantly higher than the average for recent launches in the Solana ecosystem, where projects typically favor an initial circulation between 10% and 30%.
This strategic decision aims to limit long-term selling pressure by avoiding the massive unlocks that often characterize tokenomics of DeFi projects. Early-stage investors and the team will indeed have vesting periods, but the majority of tokens will be immediately available to the market. The stated objective: to rapidly establish deep liquidity and prevent price manipulations associated with an overly restricted float.
The simultaneous listing on several major exchanges, including OKX, reinforces the project’s credibility. This immediate accessibility on leading platforms could catalyze significant trading volume from day one. Market makers will thus have the means to ensure efficient price discovery, even though initial volatility remains inevitable during any TGE.
The Fully Diluted Valuation represents the key indicator for evaluating Meteora’s positioning against its direct competitors on Solana. With a fixed supply of one billion tokens, the calculation remains simple: the launch price multiplied by this figure will give the complete FDV. If the MET token trades at $0.50 for example, the valuation would reach $500 million.
To contextualize this scenario, we must compare Meteora to other established DEXs on Solana. Raydium currently displays a market cap around $400 million, while Jupiter maintains a dominant position with massive daily volumes. Meteora’s positioning will largely depend on its ability to capture a significant share of decentralized trading flows on the network.
The platform’s technical fundamentals nevertheless justify an ambitious valuation. Meteora offers dynamic liquidity pools that automatically optimize fees according to market conditions. This technical innovation could attract LPs looking for higher yields than traditional AMMs. The question remains whether the market will immediately value this differentiation or if the project will first need to prove its ability to generate organic volume.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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