What is Fully Diluted Valuation?

Fully Diluted Valuation (FDV) represents what a cryptocurrency’s total market cap would be if every possible token was already in circulation. It’s a forward-looking metric that helps investors understand the potential dilution and true valuation of a project.

FDV vs Market Cap

Market Cap

Market Cap = Circulating Supply × Price

What the project is worth based on currently tradable tokens.

Fully Diluted Valuation

FDV = Maximum Supply × Price

What the project would be worth if all tokens existed.

Practical Example

Example Token:

  • Current price: $10
  • Circulating supply: 10 million
  • Maximum supply: 100 million
MetricCalculationResult
Market Cap10M × $10$100M
FDV100M × $10$1B

The FDV is 10× the market cap, meaning 90% of tokens aren’t yet circulating.

Why FDV Matters

Dilution Risk

  • Low circulating % means future tokens will enter market
  • New supply can pressure price downward
  • Early investors may face significant dilution

True Valuation

  • Market cap can be misleading for new projects
  • FDV shows what you’re really paying for
  • Compare FDV across similar projects

Red Flags

ScenarioRisk Level
FDV 2-3× market capNormal
FDV 5-10× market capElevated
FDV 10-50× market capHigh
FDV 50×+ market capVery High

When FDV Is Important

New Token Launches

  • Many tokens launch with less than 10% circulating
  • FDV reveals true project valuation
  • Compare to established competitors

Token Unlocks Coming

  • Large unlocks can crash prices
  • FDV helps estimate post-unlock value
  • Check vesting schedules

Investment Due Diligence

  • Always check FDV, not just market cap
  • Compare FDV to competitors
  • Consider unlock timeline

When FDV Matters Less

  • Tokens with high % already circulating
  • Inflationary tokens (no max supply)
  • Deflationary tokens with burns

Where to Check FDV

Always research tokenomics before investing—FDV is a crucial piece of the puzzle.