Fully Diluted Valuation (FDV)
Fully diluted valuation (FDV) is what a token's market cap would be if every unit that can ever exist were already in circulation: price multiplied by maximum supply, or by total supply when there is no cap.
How FDV is calculated
Market cap uses only the circulating supply. FDV uses the full supply instead. If a token trades at 1 dollar with 100 million circulating and a maximum supply of 1 billion, its market cap is 100 million dollars but its FDV is 1 billion dollars.
For tokens without a maximum supply, data providers usually substitute the total supply, so the figure depends on which method a site uses. FDV also assumes today's price would hold for all those extra tokens, which is a simplification rather than a forecast.
What the gap tells you
The ratio between market cap and FDV shows how much of the supply is still to come. A ratio close to 1 means most tokens are already circulating. A low ratio, for example a 10% float, means 90% of the supply will reach the market over time through unlocks, emissions or rewards.
If demand does not grow as fast as supply, that new supply can weigh on the price. That is why a large gap between market cap and FDV is widely read as a sign of significant future dilution.
An example
Say two tokens each have a 200 million dollar market cap. Token A has 90% of its supply circulating; token B has 15%. Token B's FDV is over six times its market cap, and its holders face far more future unlocks. On market cap alone, they look identical.
Limits of the metric
FDV says nothing about when the extra supply arrives. Tokens unlocking over ten years differ greatly from tokens unlocking next month. Some supply may also never be sold, such as treasury funds used for grants. FDV is best read together with the unlock schedule and who holds the locked tokens.
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Frequently asked questions
Is a high FDV bad?
Not by itself. It matters relative to market cap, the unlock schedule and how much real demand the project has.
What is a low float, high FDV token?
A token where only a small share of supply circulates while the full valuation is high. It often signals heavy future unlocks.
Why do FDV figures differ between websites?
Sites may use maximum supply, total supply or their own adjustments, especially for tokens without a fixed cap.
Related terms
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