Ever wondered what a cryptocurrency would be worth if all its tokens were in circulation right now? That's exactly what FDV – Fully Diluted Valuation – tells you, and it's often a sobering reality check for projects with impressive market caps but massive token unlocks ahead.
FDV calculates what the market cap would be if the maximum supply of tokens were all trading today at the current price. So if a token trades at $10 with 1 million tokens currently circulating but has a maximum supply of 100 million, the FDV would be $1 billion even though the current market cap might only be $10 million.
Here's why FDV matters in crypto: many projects release tokens gradually through vesting schedules, staking rewards, or team allocations. A project might look reasonably valued based on circulating supply, but when you see the FDV, you realize there's massive dilution coming. It's like seeing the full picture instead of just a snapshot.
When Do You Use FDV?
You'll encounter FDV discussions when crypto investors are:
- Evaluating whether a token's current price makes sense long-term
- Comparing projects with different tokenomics and emission schedules
- Analyzing potential dilution from upcoming token unlocks
- Researching new projects before making investment decisions
The term appears frequently in due diligence discussions, tokenomics analysis, and whenever people debate whether a project is overvalued. You'll also see it in conversations about venture capital investments and team token allocations.
How to Use FDV in a Sentence
Here's how FDV typically appears in crypto discussions:
- "This token looks cheap until you check the FDV – massive dilution ahead."
- "Always compare FDV to market cap when evaluating new projects."
- "The FDV suggests this project would need a $10 billion market cap to maintain current prices."
- "I avoid anything where the FDV is more than 10x the current market cap."
