Market Metrics5 min readUpdated: 2024-04-14
Market Cap vs FDV: What Truly Matters?
Fully Diluted Valuation (FDV) is the total value of a crypto project if all its tokens were in circulation.
The Formula
FDV = Current Price × Total Maximum Supply
Why FDV is a Warning Signal
If a project has a $100M Market Cap but a $1B FDV, it means only 10% of tokens are currently circulating. The other 90% will eventually be 'unlocked' and sold, which can create massive sell pressure on the price. Always compare these two numbers on TokenRadar to understand the potential for future inflation.
Continue Your Research
Apply this knowledge by checking the live Risk Scores for trending tokens on our dashboard.
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