Worldcoin’s (WLD) recent rally has created a puzzling situation: the token’s market capitalization has reached a new all-time high, while its price remains far below its previous peak from March 2024. This paradox is a crucial lesson in understanding cryptocurrency market dynamics, as it highlights the difference between price and market capitalization.
The explanation lies in a single factor: circulating supply.
- Market Cap Soars: The market cap is calculated by multiplying the current price by the number of tokens in circulation. A recent announcement about a $250 million corporate treasury strategy centered on Worldcoin helped double the market cap in less than a week.
- Price Lags: While the price saw gains, it couldn’t keep pace with the massive influx of newly unlocked tokens. The circulating supply has increased from about 1.3 billion tokens in 2024 to 2 billion tokens in September 2025. This increase dilutes the value of each individual token, preventing the price from reaching its former high.
The Problem with Token Unlocks
The paradox points to a significant risk for investors, as Worldcoin is entering an “acceleration phase” of token unlocks that will continue until 2028. This constant release of new tokens into the market creates a risk of dilution, which could put continued downward pressure on the price.
This is a key concern for many crypto investors, as a large supply of tokens is still locked up and will eventually be released. As one investor noted, the future dilution risk is “massive.”Furthermore, data shows a rise in selling pressure, with exchange inflows reaching a one-year high. This indicates that some investors are taking profits from the recent rally, which could further hinder the token’s ability to appreciate in value.
Ultimately, the Worldcoin paradox serves as a reminder for investors to look beyond simple price charts and to carefully evaluate a project’s tokenomics, particularly its unlock schedule, before investing.
September 2025, Cryptoniteuae
