Free float refers to the portion of a cryptocurrency’s total supply that is available for trading in the market. It excludes coins that are held by the project’s developers, founders, or through long-term lock-ups, which are not expected to be sold in the near term.A higher free float generally indicates greater liquidity, meaning that buying or selling the asset can happen more easily without substantially impacting its price. Conversely, a lower free float can result in higher price volatility, as fewer coins available for trading can lead to larger price swings when trades occur.Understanding free float is essential for investors, as it can influence market dynamics and overall pricing. Monitoring changes in free float can also provide insights into market sentiment—if a significant amount of coins are locked or removed from circulation, it may signal confidence in the project’s long-term value.