Why does one token sit at 25 million in market cap while another reaches 200 million? The answer often comes down to one critical factor: how the supply is managed.

One of the biggest mistakes in tokenomics is allowing too many small holders to own significant portions of the total supply. When that happens, you're looking at constant selling pressure, fragmented ownership with no real consensus, and endless sideways price action. Instead of unified direction, you get chaos—thousands of retail participants each making independent decisions, leading to perpetual chop and frustration.

Projects that maintain tighter supply structures tend to show different price dynamics. Concentration breeds coordination; distribution breeds noise.