When you're browsing Zerion’s Feed and checking out what others are buying and selling, you'll notice some abbreviations next to each token. Understanding what these mean can help you make more informed trades and avoid some common pitfalls.
Here's a quick breakdown of the key metrics you'll see.
MCap: Market Capitalization
Market cap tells you the total value of all currently circulating tokens. It's calculated by multiplying the token's price by the number of tokens in circulation. It only includes tokens that are freely transferable.
Why it matters: MCap gives you a sense of a token's size and maturity. A $3M market cap token is far smaller (and typically riskier) than one with a $300M market cap. Smaller caps can move faster in both directions.
FDV: Fully Diluted Value
FDV represents what the market cap would be if every token that could ever exist was already in circulation. This includes tokens that are locked, vesting, or haven't been minted yet.
Why it matters: If FDV is much higher than MCap, it means more tokens will eventually enter circulation, which could dilute the price. A large gap between the two is worth investigating before you trade. However, for many memecoins, MCap and FDV are usually the same. This means all tokens are freely circulating right after launch.
LIQ: Liquidity
Liquidity shows how much value is available in the trading pool. Higher liquidity means you can buy or sell larger amounts without significantly moving the price.
Why it matters: Low liquidity tokens are harder to exit. You might see a great price on paper, but actually selling a meaningful amount could crash the price. Prices of low liquidity tokens can quickly go up if big players buy or down if they sell. Tokens with higher liquidity are typically more stable.
VOL: Trading Volume
Volume is the total value of trades over 24 hours. It tells you how actively a token is being bought and sold.
Why it matters: High volume often signals interest or momentum. However, it could also be fake to try to drive attention. Low volume can mean a token is illiquid, or that price movements may be less reliable. Very high volume (>10x MCap) can also mean that practically everybody has already bought the token, and the price has peaked.
HLDRS: Holders
This is simply the number of unique wallet addresses holding the token.
Why it matters: More holders generally suggest broader distribution. A token with very few holders might be concentrated in a small number of wallets, which increases the risk of large price swings if one holder sells. But it could also mean that you’re very early. The higher number of holders can also be fake, for example, through airdrops of $0.01 worth of tokens to thousands of addresses.
Pro tip: No single metric tells the whole story. A token might have impressive volume but terrible liquidity, or a low market cap but an FDV that's ten times higher. Use these numbers together to build a fuller picture before making any trades.