What is fully diluted valuation in crypto? FDV explained
Fully diluted valuation (FDV) is what a cryptocurrency project would be worth if every token that will ever exist were already in circulation, valued at today’s price. You calculate it by multiplying the current token price by the maximum supply. Comparing FDV with market cap shows how many tokens are still to come, and how much future dilution you may face as a holder.
What is fully diluted valuation (FDV)?
Fully diluted valuation (FDV) in crypto is a hypothetical value: the total market value of a cryptocurrency project if its full token supply were trading now. It takes the current value of one token and applies it to every token that can ever exist. “Fully diluted” means every token is counted, including those locked for the team, held back for investors or not yet created through mining or staking rewards.
The term comes from the stock market, where “fully diluted” shares include stock options and convertible bonds that could become shares later. In crypto the gap tends to be much bigger: many new tokens launch with only a small part of their supply in circulation.
FDV is not a price prediction or a maximum value. It assumes the price at which the token trades today stays the same while supply grows, which is rarely what happens. Some investors read a high FDV as a sign of future potential; it really only measures supply. Think of it as a warning light for how much new supply is waiting, not as a target.
How is fully diluted valuation calculated?
The formula is simple: FDV equals current token price multiplied by maximum supply.
Fully diluted valuation (FDV) = current token price × maximum supply
Some sites call the maximum supply the max supply. Where a token has no maximum supply, data sites usually use the total token supply instead: the token’s total supply equals all tokens created so far, including locked ones. When neither figure is known, there is no meaningful FDV figure, and some sites leave the field blank.
FDV calculated: a simple example
Take an imaginary token, ABC, trading at €2:
| Figure | Amount |
|---|---|
| Current token price | €2 |
| Circulating supply | 100 million tokens |
| Maximum supply | 1 billion tokens |
| Market cap (€2 × 100 million) | €200 million |
| Fully diluted valuation (€2 × 1 billion) | €2 billion |
ABC looks like a €200 million project, but at today’s price the full supply would be worth €2 billion. Nine out of ten tokens have not reached the market yet. If those tokens enter circulation and demand stays unchanged, the price has to fall for the total market value to stay the same.
Circulating supply, total supply and maximum supply
Understanding FDV starts with three supply figures, and they apply to any digital asset with a supply schedule:
- Circulating supply: the circulating tokens that are publicly available and can be traded at any given point. Market cap uses this figure.
- Total supply: all tokens created so far, minus any burned, including tokens that are locked.
- Maximum supply: the hard cap on tokens that can ever exist, if the code sets one. Bitcoin’s maximum supply is 21 million coins.
Our pages on circulating supply and supply explain each figure in more detail.
FDV vs market cap
The difference between FDV and market cap is which supply you count. Market cap is current price times circulating supply; FDV is current price times maximum supply. So FDV is always equal to or higher than the current market cap.
They are equal when the full supply is already in circulation. Bitcoin comes close: most of its 21 million coins have already been mined, so its FDV and market cap are not far apart. A new token with a small circulating supply can have an FDV many times its market cap.
Comparing market cap alone between projects can mislead you. Two tokens with the same €200 million market cap look similar, but if one has an FDV of €220 million and the other €2 billion, the second faces far more new supply.
What does a high FDV signal?
A high FDV relative to market cap signals that a significant portion of the supply is still locked, and that selling pressure may come when it unlocks. It is not automatic proof that a token is overvalued, but it is a reason to look closer.
A low market cap next to a high FDV is the classic warning sign. The pattern to watch is the low float token: a launch with a small circulating supply and a high FDV. A small float makes the price easy to push up early, because little supply is available. Later, as team and investor tokens unlock, new supply hits the market. With unchanged demand, more tokens mean a lower price per token. Early investors who paid far less may sell to lock in profits.
Token unlocks, vesting and future dilution
Token unlocks are the moments when locked tokens enter circulation, and they are the main source of future dilution. Future token releases move the circulating supply towards the total supply, and over time towards the maximum supply. Most projects reserve tokens for the team, early investors, a foundation treasury and community rewards, released on vesting schedules.
A typical token release schedule has a cliff (no tokens released for, say, the first year) followed by monthly or quarterly unlocks. Large unlocks are often public in advance on the project’s website or tokenomics page. When supply increases faster than demand, the price tends to fall, and unlock dates often bring extra price volatility. An increasing token supply is not a problem in itself if real demand grows with it. Our page on tokenomics explains how allocations work.
How token burning and emissions change FDV
Supply is not always fixed, so FDV can be a moving target.
- Emissions: many networks create new tokens as staking rewards or mining rewards. A high inflation rate means circulating supply keeps growing.
- Token burning: some projects destroy tokens, for example with part of their transaction fees, which reduces total supply.
- Changing caps: a project’s governance can sometimes vote to change the maximum supply.
The FDV-to-market-cap ratio
The FDV-to-market-cap ratio is FDV divided by market cap, which is the same as maximum supply divided by circulating supply. In the ABC example it’s €2 billion ÷ €200 million = 10.
| Ratio | What it suggests |
|---|---|
| Close to 1 | Almost all tokens are circulating; little dilution ahead |
| 2 to 5 | A meaningful share of supply is still to come |
| Above 5 | Most of the supply is locked; check the unlock calendar carefully |
These bands are a rough guide, not a rule. Compare ratios between projects in the same sector, and always check when the next unlocks happen.
Other metrics to check alongside FDV
FDV helps investors understand supply dynamics and future supply, but it says nothing about whether a project is useful. Check other metrics too: trading volume (can you actually sell?), the unlock calendar, active users, and for DeFi projects the total value locked in their smart contracts. Together they lead to more informed investment decisions than any single number.
How to research FDV before you buy
Before you buy a token, check the supply figures yourself rather than trusting one website.
- Read the official documentation. Look for the token allocation and vesting schedules. For tokens offered to the public in the EU, MiCA generally requires a white paper that describes the token, its rights and its risks.
- Check a blockchain explorer. Smart contract details show the real total supply and the largest wallets.
- Compare data providers. Different sites calculate FDV differently, especially for tokens without a maximum supply.
- Note the date. Supply changes with every unlock, so write down when you checked.
Then apply the usual checks for EU residents: buy only through a crypto exchange with a MiCA licence, and keep records of what you paid and when, because tax rules depend on them.
Limitations of FDV
Fully diluted valuation is a key metric for supply, but it has clear limits. It assumes a constant price while supply grows, it ignores demand and supply conditions in the cryptocurrency market, it cannot be calculated for tokens without supply data, and platforms sometimes use different supply figures for the same token.
Use fully diluted valuation as one part of your own research, not as a buy signal. In the cryptocurrency market, it helps you make informed decisions about risk, nothing more. Crypto-assets are highly volatile, you can lose all the money you invest, and past performance says nothing about future returns.
Related terms
Questions people ask
What is fully diluted value?
Fully diluted value, or fully diluted valuation (FDV), is the current token price multiplied by the maximum number of tokens that can ever exist. It shows what the project would be worth at today's price once every token is in circulation.
What does FDV in crypto mean?
FDV stands for fully diluted valuation. Crypto data sites show it next to market cap so you can see how much of a token's supply is still locked or not yet created.
Is FDV the same as market cap?
No. Market cap uses only the tokens in circulation today; FDV includes tokens that are still locked or not yet created. They are only equal when the full supply is already circulating.
What is a good FDV ratio?
There is no single good number. An FDV-to-market-cap ratio close to 1 means little future dilution. A ratio of 5 or 10 means most tokens are still to come, so check the unlock schedule carefully before you buy.
Is it better to have a higher market cap or lower?
Neither is better on its own. A higher market cap usually means a larger, more liquid project; a lower one leaves more room to grow but also more risk. What matters is how market cap compares with FDV and with what the project actually does.