Fully Diluted Valuation (FDV)
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Fully Diluted Valuation (FDV) represents the total market value of a cryptocurrency if all possible tokens were in circulation. It’s calculated by multiplying the token’s current price by its maximum supply, offering a forward-looking view of a project’s potential valuation.
Why FDV Is Useful
FDV gives investors insight into how over- or undervalued a token might be, especially when only a small portion of its supply is currently circulating. High FDV with low circulating supply may signal future inflation as more tokens unlock.
A Broader Perspective
While market cap reflects current value, FDV helps anticipate long-term price pressures, making it a key metric for evaluating tokenomics and project sustainability.