Fully Diluted Valuation (FDV)

Why FDV Matters

Fully diluted valuation estimates a token’s hypothetical value if the relevant total or maximum supply were valued at the current market price. It helps readers see how much supply sits outside circulation and compare that amount with the token’s current market cap.

FDV is not cash held by the project, a fundraising total, or a prediction. It applies today’s price to a larger supply assumption. That price can change before locked, vested, or unissued tokens ever enter circulation.

How FDV Is Calculated

The basic formula is:

FDV = current token price × relevant total or maximum supply

Illustrative example: a token priced at $0.20 with a relevant supply of 1,000,000,000 has an FDV of $200 million. If only 250,000,000 tokens circulate, its market cap at the same price is $50 million. The calculation excludes fees and assumes the displayed price applies across the full supply.

Trackers may use total supply or maximum supply. Verify the source’s method before comparing two reported FDV figures.

FDV vs Market Cap

Market cap uses circulating supply, so it describes the tokens currently counted as available in the market. FDV uses a broader supply figure and therefore includes tokens that may be locked, vested, reserved, unminted, or scheduled for future release.

The gap between market cap and FDV highlights a supply difference. It does not show when tokens will unlock, who controls them, whether demand will change, or what future price they may trade at. Those questions require the token’s allocation and vesting schedule.

Common Mistakes

• Treating high FDV as proof that a token is overvalued.
• Comparing figures calculated from different supply definitions.
• Assuming every possible token will enter circulation immediately.
• Reading FDV as money the team owns or can withdraw.

Use FDV to investigate supply structure, not to predict price. Check the supply definition and unlock schedule behind the number.