Fully Diluted Market Cap (FDV): Understanding a Token’s Value

When you're trying to predict a cryptocurrency's future success, knowing about the FDV can be helpful. Though fully diluted market caps aren't a common metric, they provide some useful insight. This guide will help you learn how to calculate and analyze fully diluted market caps so you can pick promising cryptos.

What Is Fully Diluted Market Cap?

A token’s FDV refers to the token's market cap once all the tokens have been released. This metric lets you compute a project's future market cap.

The fully diluted market cap — also known as fully diluted valuation, or FDV — is a simple concept. It builds on the idea of a market cap, which means the total value of all crypto in a network at any given point. The FDV, however, looks at the future instead of the coins currently available. Compared to the traditional market cap metric, a crypto’s FDV tells you what the coin's market cap would be if all possible coins were issued.

Keep in mind that the fully diluted market cap doesn’t predict later prices. Rather, it sees how much the market cap would be if all tokens were available and worth the current market price. This is helpful because it makes it easy to see if a crypto is overvalued or undervalued. If the market cap changes drastically when supply is increased, it can be a sign that the coin's current value is incorrect.