What is Fully Diluted Valuation (FDV)?

Fully diluted valuation, or FDV, estimates what a token’s market cap would be if every token that will ever exist were already circulating, calculated as current price times max supply. It contrasts with the market cap based on circulating supply, and the gap between the two shows how much dilution is still to come.

This matters because a token can look small by circulating market cap yet carry an enormous FDV, meaning heavy future unlocks could weigh on the price for a long time.

Example: a newly launched token trades with a modest circulating market cap, but because most of its supply is still locked, its FDV is many times larger, hinting at significant future selling pressure.

Safety note: a very high FDV relative to circulating market cap is a caution sign, since unlocking tokens can dilute holders and depress prices for months or years. Projects sometimes emphasise the small circulating figure while hiding a towering FDV. Always compare the two before judging whether a token or its reward is fairly valued. Related terms include circulating supply, max supply, market cap, and tokenomics.