FDV (fully diluted valuation)

FDV is a project's market cap as if every coin were already circulating: price × max (or total) supply. A big gap between FDV and market cap signals upcoming unlocks.

How it works

Regular market cap counts only circulating coins. FDV (fully diluted valuation) shows what the project would be worth at the same price if all future coins were already on the market. When there is no max supply, FDV is often calculated from total supply.

Many new tokens launch with a small float: 5–20% of coins trading, the rest locked with the team, investors and funds. Market cap looks modest while FDV is huge. When the locks end, the new coins get sold, and the price needs a lot of fresh money just to hold steady.

FDV is not a forecast or a "fair price". It is a way to see how much future issuance today's price ignores. It helps to compare projects on both market cap and FDV at the same time.

Example with numbers

A token costs $2, with 100 million circulating out of a 1 billion max. Market cap = $200 million, FDV = $2 billion. For the price to stay at $2 after every coin unlocks, the market must absorb another 900 million tokens, which is $1.8 billion of new buying.

Common mistake

A common mistake is looking only at a small market cap and thinking "lots of room to grow". If FDV is 10 times the market cap, unlocks will weigh on price for a long time. Check the market cap to FDV ratio and the vesting schedule before buying.

Questions and answers

What is FDV in simple terms?

It is a project's value at today's price if all its coins, including ones not yet released, were already on the market.

How do you calculate FDV?

Multiply the token price by max supply. If there is no max, total supply is usually used.

Why is a high FDV bad?

It is not bad by itself, but a big gap to market cap means many unlocks lie ahead. New coins get sold, which weighs on price.

FDV (fully diluted valuation)

How it works

Questions and answers

Related terms

Read next