Fully Diluted Valuation (FDV)
Fully diluted valuation, or FDV, estimates a crypto asset’s total value if all tokens in its maximum or total supply were circulating at the current market price.
✦ Key Insight
FDV helps traders evaluate future dilution risk. A project may have a relatively small current market capitalisation but a much larger FDV because many tokens remain locked.
✕ Common Misconceptions
Ignoring FDV when buying new tokens
Treating FDV as guaranteed future market cap
Comparing projects without checking token unlock schedules
Confusing total supply with circulating supply
Assuming low circulating supply means scarcity
Detailed Explanation
How It Works
A simplified formula is:
FDV = Current Token Price × Maximum or Total Supply
The exact supply figure used can vary by platform.
FAQs
Is high FDV bad?
Not automatically, but it can indicate dilution risk.
Can FDV fall?
Yes, if token price falls or supply assumptions change.
Why does FDV matter for new projects?
Because early circulating supply may represent only a small share of eventual supply.
In Practice
Dig Deeper
Market Cap
Market capitalization, or market cap, estimates the market value of a cryptocurrency's circulating supply. It is commonly calculated as: Market Cap = Current Price × Circulating Supply
Circulating Supply
Circulating supply is the number of cryptocurrency units considered publicly available and circulating in the market. It generally excludes tokens that remain locked, permanently unavailable, or otherwise outside active circulation according to the data provider's methodology.
Token Unlock
A token unlock is a scheduled release of previously locked tokens — typically those allocated to team members, early investors, the treasury, or advisors — into the circulating supply. Unlocks are defined by the token's vesting schedule, often published at launch.
Vesting
Vesting is a schedule that delays when allocated tokens become available to a team, investor, contributor, or other beneficiary.