Fully diluted valuation (FDV)

Fully diluted valuation (FDV) is what a cryptocurrency's market capitalisation would be if every token that will ever exist were already in circulation. It is calculated by multiplying the current price by the maximum supply, or by the total supply if there is no maximum.

For example, a token priced at $2 with 100 million tokens circulating has a market cap of $200 million. If its maximum supply is 1 billion, its FDV is $2 billion. That gap tells you 90% of supply has yet to reach the market, through team and investor unlocks, staking rewards or ecosystem incentives.

Comparing market cap with FDV is one of the quickest checks on dilution risk. A low-float, high-FDV token can look cheap on market cap while large amounts of future supply weigh on the price. Many tokens launched during 2023 and 2024 had this profile, and several fell sharply as their unlock schedules progressed.