FDV is the theoretical market cap of a crypto asset if its entire maximum supply were already in circulation at the current price.
Fully diluted valuation, or FDV, estimates what an asset would be worth if every possible token were already issued and trading at the current price.
It is calculated by multiplying the current price by the maximum or total supply, rather than just the circulating supply used for market cap. If many tokens are still locked, vesting, or unmined, FDV can be far higher than the current market cap.
FDV matters because it hints at future dilution. When large amounts of new supply unlock over time, that selling pressure can weigh on the price even if demand stays constant.
Comparing market cap to FDV gives a quick sense of how much potential dilution is ahead. A market cap far below FDV is a signal to research the token release schedule.
A token trades at $1 with 100 million coins circulating, giving a $100 million market cap. But its maximum supply is 1 billion, so its FDV is $1 billion. That tenfold gap means 900 million tokens are yet to enter circulation, which could dilute the price as they unlock.
Market cap uses only the coins currently in circulation, while FDV uses the maximum or total supply. FDV shows what the valuation would be if every possible token were already trading at the current price.
A large gap means most of the supply has not entered the market yet. As those tokens unlock over time, the added supply can create selling pressure and weigh on the price, so it is worth checking the release schedule.
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