Fully Diluted Valuation (FDV)
FDV is the valuation if all tokens circulated at today's price. A big market-cap-to-FDV gap signals future dilution risk.
Quick answer
FDV = price x total (or maximum) supply. Market cap = price x circulating supply. When most supply is locked, FDV can be far larger than market cap.
What it means
Circulating supply is tradable now; total or maximum supply includes tokens that are locked, vested, or not yet minted. FDV applies the current price to all of them.
Why it matters
A token can look small by market cap but carry a very large FDV. As locked tokens unlock and circulate, they can add selling pressure. This is context, not a prediction.
What happens if you ignore this
Judge a token by market cap alone and a big FDV gap can blindside you. You might buy something that looks 'small' while several times that value in locked tokens waits to unlock and sell. Those unlocks can quietly cap the price for months. FDV is how you see that risk coming.
Common mistakes
Treating FDV as market cap, or ignoring the unlock schedule that determines when locked supply enters circulation.
Story
Grace sees a token at a $10M market cap and thinks it's tiny with room to run. She doesn't check the FDV.
She expects a small token that can grow easily.
Only 25% of supply is circulating. The FDV is $40M, and scheduled unlocks keep adding sellers. Every time the price rises, freshly-unlocked tokens are sold into it.
Market cap shows the size today; FDV shows the size if everything unlocks at this price. A big gap means dilution is coming — factor it in before assuming a token is 'small.'
Beginner tips
- Compare market cap to FDV: a big gap means lots of supply is still locked.
- Check the unlock schedule — that's when locked tokens can start selling.
- A low circulating percentage is a dilution flag, not automatically a bargain.
Common mistakes
- Confusing FDV with market cap.
- Ignoring the token unlock/vesting schedule.