FDV

What is  FDV - Fully Diluted Valuation?

Fully Diluted Valuation (FDV) refers to the theoretical market capitalization of a cryptocurrency if all possible coins or tokens were in circulation. It represents the asset’s potential total value once the maximum supply has been fully issued, including coins that are still locked, vested, or yet to be mined.

FDV is calculated using the formula:

Fully Diluted Valuation (FDV) = Current Price × Max Supply

This metric is crucial for traders and investors because it provides insight into a project’s long-term valuation and potential dilution risk. A large gap between FDV and current market capitalization suggests that significant token unlocks or emissions are still to come — which can increase supply and potentially put downward pressure on price.

FDV is especially important when analyzing early-stage or newly launched tokens, where only a small percentage of the total supply is circulating. It helps investors understand the true potential market cap once all tokens become available and is often used to compare projects with different supply schedules.

However, traders should also consider factors like vesting periods, token burns, and supply lockups, since these can significantly impact how quickly the fully diluted value might be reached.