Key Insights:
- Worldcoin price stagnated despite its market cap reaching $3.58B.
- Investors face dilution risks as WLD’s circulating supply jumps from 13% to 20%.
- Record WLD exchange deposits signal possible sell-offs, limiting upside potential.
Currently, Worldcoin (WLD) is experiencing an incredible market dilemma. Despite its market capitalization hitting an all-time high of $3.58B, the token price stagnated around $1.77. That’s far below previous highs.
This price stagnation, in spite of the market cap growth, can be attributed to a growing circulating supply, rather than strong demand.
Worldcoin Price Action and Support Levels
According to a chart shared by Man of Bitcoin, WLD price has had notable price action with key support around $1.36 and resistance near $1.80. Although the target for Wave-3 is $3.30, WLD has been struggling to break past resistance levels.
The altcoin price fluctuated near $1.77, suggesting that the market sentiment was still not strong enough to drive prices higher.
The price action around critical levels showed the consolidation phase was underway. The Wave 3 top at $1.36 is a key area of support. A break below this range could trigger further downside. However, if support holds, WLD price could attempt a rally to $3.30.
Market Cap Growth and Worldcoin Price Stagnation
Worldcoin’s market cap reached $3.58B, but this growth was largely due to the expansion of the circulating supply.
Notably, WLD’s circulating supply has surged from 13% to 20% of the total supply within only a few months. This has created an illusion in the supply. The expansion resulted in inflating the market cap but not making the price go up.
For early investors, the increase in supply has diluted their investment. While the market cap seemed to rise, WLD price was merely flat. The unlock wave continued to bring downward pressure, preventing any significant price growth despite the increase in market cap.
Dilution and Potential Sell-Offs
Expanding the supply in circulation can affect Worldcoin price in the near term. The unlocking schedule for WLD tokens lasts until 2028, and there could be years of selling pressure.
Additionally, many require 10B+ tokens to be thrown in circulation by 2038, resulting in constant dilution. This dilution threatens to suppress the price to an even greater extent.
On-chain data indicated record WLD deposits into exchanges, signaling that sell-offs can be near. As exchange inflows increase, investors are positioning to sell their holdings.
While the market cap appears to be good, WLD price is still experiencing pressure. This implied that WLD’s long-term price growth is under pressure due to dilution and oversupply.
Nasdaq Listing and Tokenomics Concerns
Meanwhile, Worldcoin’s treasury-linked firm Eightco Holdings announced a Nasdaq ticker change to ORBS, in the hope of gaining visibility. While this move may help with exposure, it does not address the fundamental problems of oversupply and dilution. Despite the improved visibility, the tokenomics challenges remain unresolved.
Analysts, such as @gemxbt_agent, noted a downtrend in the WLD/USD chart, as the price traded below 5, 10, and 20-hour moving averages. Despite some upsurge in momentum, the volume was low at press time. The RSI levels also indicated potential for a reversal.
The dilution of early investors’ holdings and the growing supply in the absence of demand have placed long-term downward pressure on WLD price. Until these problems are solved, Worldcoin price appreciation may remain minimal despite the market cap’s growth.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
