What is Fully Diluted Valuation (FDV)?
Fully diluted valuation is the token's current price multiplied by its maximum total supply — the value the project would have if every token that can ever exist were trading at today's price.
Also known as: FDV · fully diluted market cap · FDV market cap
In plain terms
FDV answers: what is this project worth if all its tokens existed and traded at the current price? It contrasts with market cap, which only counts tokens circulating today.
A big gap between market cap and FDV means lots of tokens are still coming to the market — future selling pressure that today's price does not reflect.
How it works
FDV = current price × total (or max) supply. If some supply is not yet minted — as with inflationary emissions — the maximum supply figure is used.
Investors compare FDV to market cap to estimate dilution ahead: an FDV ten times the market cap implies nine tenths of the supply is still locked or unissued.
FDV is a snapshot, not a forecast: the price of the marginal tokens entering the market will likely differ from today's price.
Example
Hypothetical: a token trades at $2.00 with 200,000,000 tokens circulating (market cap $400,000,000) and a total supply of 1,000,000,000 (FDV $2,000,000,000). Only 20% of supply is on the market; the remaining 80% represents potential future supply at an assumed $2.00.
Why it matters for founders and investors
FDV exposes projects whose circulating market cap looks modest but whose total valuation rivals established players — a common red flag when insider allocations dominate the unissued supply.
It is also the lens for comparing token deals: the same $10,000,000 raise at a $100,000,000 FDV buys half the ownership it would at a $50,000,000 FDV.
Common misconceptions
FDV is not a price target or a fair-value estimate; it mechanically assumes all future supply trades at today's price. Unlocks usually change the price.
Comparing FDVs across projects with different supply designs can mislead; the distribution and unlock schedule matter more than the headline number.
Frequently asked questions
What is the difference between market cap and FDV?
Market cap multiplies the price by circulating supply; FDV multiplies it by total or maximum supply. The gap shows how much supply is still locked or unissued.
Why do investors care about FDV at the investment stage?
Because it defines the entry valuation for their tokens: the FDV at which they buy determines what share of the fully diluted supply their allocation represents, which drives their potential return.