What Is FDV (Fully Diluted Valuation)?

Fully Diluted Valuation (FDV) is a metric that estimates the total market capitalization of a cryptocurrency if all of its tokens were in circulation at the current price.

How FDV Is Calculated

FDV = Current Price × Maximum Supply

This differs from market cap, which uses only the circulating supply.

Why FDV Matters

• Future Dilution: A large difference between market cap and FDV indicates that many tokens have yet to enter circulation, which could create selling pressure over time.
• True Valuation: FDV gives a more complete picture of a project's implied valuation.
• Comparison Tool: When comparing projects, FDV can reveal which assets have more potential dilution ahead.

Example

If a token trades at $10 with 10 million tokens circulating (market cap = $100M) but has a maximum supply of 1 billion tokens, its FDV would be $10 billion—100 times the current market cap. This means 990 million tokens could still enter the market.

Key Takeaway

Always check both market cap and FDV when evaluating a cryptocurrency. A low market cap with an extremely high FDV may signal significant future dilution risk.