Definition
Fully diluted valuation (FDV) is what a cryptocurrency's market cap would be if its entire max supply were in circulation at today's price: price × max supply.
How it works
The formula is FDV = price × max supply. When a token has no max supply, many data providers use total supply instead and others leave FDV blank, so the same token can show different FDVs on different sites. Because FDV uses the current price, it is a snapshot that moves with every price change, not a forecast of future value.
FDV matters most when it is far above market cap. Market cap counts only circulating tokens, while FDV counts every token that will eventually exist. A large gap means many tokens are still locked, unvested or unissued. As they are released, often on a published unlock schedule, supply rises. If demand does not grow at the same pace, the price per token has to fall for the total value to stay the same. This effect is called dilution.
A quick check is the ratio market cap ÷ FDV. A ratio close to 100% means most of the supply is already trading, while a low ratio means most of it is still to come. FDV does not show when the remaining tokens unlock or whether their holders will sell, so it is best read next to the unlock schedule.
Example (hypothetical numbers)
Suppose Token Z trades at $1.50, with 200,000,000 tokens circulating and a max supply of 1,000,000,000.
Market cap = $1.50 × 200,000,000 = $300,000,000.
FDV = $1.50 × 1,000,000,000 = $1,500,000,000.
Market cap ÷ FDV = $300,000,000 ÷ $1,500,000,000 = 20%, so 80% of the eventual supply is not yet on the market.
If all 1,000,000,000 tokens circulated and the total value stayed at $300,000,000, the price would be $0.30, which shows how much dilution the gap implies.
Common mistakes
- Comparing projects by market cap alone while ignoring a much larger FDV.
- Reading FDV as a price target or as a value the project is expected to reach.
- Assuming every provider calculates FDV the same way for tokens without a max supply.
- Overlooking the unlock schedule, which decides when the gap between market cap and FDV turns into new supply.
Related calculators
This glossary is for education only and is not investment advice. Examples use hypothetical numbers.