Today feeling sad because i visit twists time hospital in a single a day but still working on ran the numbers on FDV absorption requirement at every price point genius has traded at since launch.
at TGE $0.17 market cap was $57M FDV $170M absorption gap $113M.at ATH $0.95 market cap $318M FdV $950M , absorption gap $632M.at current $0.43 market cAp $145M, FDV $430M, absorption gap $285M. the absorption gap have compressed 55 percent from ATH levels. the market has already absorbed $ 347M of the original $632M gap simply through price declining,
absorption gap compression through price decline is not the same as absorption gap closing through demand. at ATH the gap was large because price waswas high and supply was same. today the gAp is smaller because price fell not because buyers absorbed the supply.The gap closing through price decline is deflationary nOt bullish. real absorption closes the gap by market cap growing toward fdv. price decline closes it by FDv shrinking toward market cap.
every time FDV compression is cited as positive it conflates two very different mechanisms. fDV compression through price decline means token holders lost money. FdV compression through market cap growth means tOken gained value. genius has experienced the former. the latter hasnt happened yet.
Whether market cap grows above $200M before FDV compresses below $400M.that crossover p0int is where real absorption starts winning over price decline.
math doesnt lie. people do