Quick answer: Crypto market cap equals token price multiplied by circulating supply. Fully diluted valuation, or FDV, multiplies price by the maximum or fully unlocked supply. A small gap can mean limited future dilution, while a large gap deserves careful review of unlocks, emissions and demand.Valuation metrics are useful only when supply data is clear.
Quick answer: Crypto market cap equals token price multiplied by circulating supply. Fully diluted valuation, or FDV, multiplies price by the maximum or fully unlocked supply. A small gap can mean limited future dilution, while a large gap deserves careful review of unlocks, emissions and demand.
Valuation metrics are useful only when supply data is clear. A headline market cap can look small when most tokens are locked and scheduled for release.
Market cap formula
Market cap uses the number of tokens currently circulating. It is useful for comparing the present size of assets, but circulating-supply data can be incomplete or defined differently by each data provider.
FDV formula
FDV assumes the future supply is already available at the current price. It is not a forecast of where the price will go. It is a way to show the valuation implied if all tokens were included.
Questions to ask
- How much supply is circulating today?
- When are investor, team and treasury tokens unlocked?
- Are emissions fixed, variable or governance-controlled?
- Does demand have a reason to grow with supply?
- Is the price supported by real liquidity?
Why the gap matters
A large FDV gap can create future selling pressure, but unlocks do not automatically crash a token. The effect depends on recipients, hedging, demand and market conditions. A small gap is not proof of quality either.
FAQ
Which metric should beginners use?
Use both. Market cap describes current circulating value, while FDV highlights potential dilution.
Can FDV be infinite?
Some assets have no fixed maximum supply, so data providers use an estimate or omit FDV.
