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What Is FDV?

FDV, fully diluted valuation, is a token's price multiplied by its maximum eventual supply, rather than just the tokens circulating today. It answers a blunt question: what would this project be worth at today's price if every token that will ever exist were already out?

How It Actually Works

Many projects launch with a small fraction of supply circulating while the rest sits locked for the team, investors, and future rewards. A token at $1 with 100 million circulating but 1 billion maximum has a market cap of $100 million and an FDV of $1 billion. Those locked tokens unlock on a schedule, and when they do, they tend to get sold. Same price, ten times the eventual supply pressing on it.

Risks and Common Mistakes

• Ignoring the gap. A large FDV-to-cap ratio means most of the supply has not hit the market yet. Early buyers at a "small cap" are often buying into a firehose of scheduled selling.
• Comparing caps across different float levels. A fully circulating asset like Bitcoin and a 10 percent float token are not comparable by market cap alone.
• Assuming unlocks are priced in. Sometimes. Unlock dates are public, and prices still routinely sag into them.

When It Matters

Every time you evaluate a token that is not fully circulating, which is most new tokens. Check the vesting schedule before caring about the chart. Screener tools show FDV next to cap; my DexTools review covers where to find it.

Related Terms

• Market cap
• Liquidity

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