Fully Diluted ValuationFDV
Fully diluted valuation (FDV) is a token's price multiplied by its maximum supply — what it would be worth if every possible token were in circulation.
Fully diluted valuation shows what a token would be worth if every token that will ever exist were already trading at today's price. Comparing it with market cap shows how much new supply could still hit the market.
- Category
- Cryptocurrency and Blockchain
- Reading time
- 3 min
- Also called
- Fully diluted market cap, FDV, Fully diluted value
- Updated
FDV in plain words
FDV estimates a crypto project's total value as if every token that will ever exist were already in circulation.1
Market cap uses the circulating supply instead: current price times circulating supply.2
A wide gap between market cap and FDV means many tokens are still to be released, and that gap is where problems start.3
How to use FDV
Find the price
Use the current token price.
Find total or max supply
FDV uses Token Price × Total Supply.1
Compute market cap too
Price × circulating supply.2
Compare the two
Divide FDV by market cap to see the dilution multiple.
Check the unlock schedule
A token unlock schedule determines when eligible investors receive tokens.2
Combine with other metrics
Use FDV with other metrics for a broader analysis.1
Worked examples
Example 1 — Basic FDV
FDV 10× market capA hypothetical token trades at $2, with 50 million circulating and 500 million total supply.
| Market cap | $2 × 50M = $100M |
| FDV | $2 × 500M = $1B |
| Multiple | $1B ÷ $100M = 10× |
A tenfold gap is the kind of large differential Binance Research flags as a warning sign.3
Example 2 — Unlock without new demand
−50% priceHypothetically 50 million more tokens unlock and the market value stays at $100M.
| New circulating | 50M + 50M = 100M |
| Price if value is flat | $100M ÷ 100M = $1 |
| Change | $1 − $2 = −50% |
Holders get diluted when demand does not keep pace with supply increases.2
Example 3 — Low gap
About 1.1×A hypothetical token: 90 million circulating, 100 million total, price $5.
| Market cap | $5 × 90M = $450M |
| FDV | $5 × 100M = $500M |
| Multiple | $500M ÷ $450M ≈ 1.11× |
With most supply already out, there is little left to dilute holders when demand fails to keep up.2
FDV vs market cap
| Aspect | Fully diluted valuation | Market cap |
|---|---|---|
| Supply used | Total or max supply | Circulating supply |
| Shows | Future size at today's price | Current size |
| Changes with unlocks | No | Yes, rises with circulating supply |
| Main warning | Dilution ahead | Thin float |
Where traders use FDV
Comparing tokens
Look past Market Capitalisation at future supply.
Unlock planning
Expect Volatility around big unlocks.
Fundamental work
Add supply to Fundamental Analysis.
Position sizing
Limit Exposure to high-dilution tokens.
Advantages and disadvantages
Advantages
- Shows hidden future supply.
- Simple to calculate.
- Helps compare new and mature tokens.
Disadvantages
- Assumes today's price for all future tokens.
- Total supply can change by minting or burning.
- Not meaningful for tokens without a supply cap.
- Says nothing about when unlocks happen.
Going deeper
Read as far as you need. Each level builds on the one before it.
All tokens counted
Beginner
FDV counts every token as if it were already circulating.1
Vesting and lockups
Intermediate
The vesting or lock-up period is the time after distribution when holders can't sell.3 Its end often moves circulating supply toward the FDV figure.
When FDV breaks down
Advanced
FDV only really makes sense for tokens with a fixed supply; if supply is uncapped or can be changed by governance, the figure is unreliable.3
Common mistakes
Using only market cap
Missing large future supply.
Treating FDV as a target price
It is a snapshot, not a forecast.
Ignoring timing
A 10× gap over ten years differs from one next month.
Mixing supply definitions
Sites differ on total vs max supply.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- FDV = price × total supply.
- Market cap uses circulating supply.
- A large gap signals future dilution.
- Check unlock and vesting schedules.
- Use FDV with other metrics, not alone.
Frequently asked questions
Is a high FDV bad?
Does Bitcoin have an FDV?
Where do I find unlock dates?
Further learning
- Market Capitalisation
The circulating-supply version.
- Inflation
How new supply dilutes holders.
- Fundamental Analysis
Where supply fits in research.
- Volatility
Price swings around unlocks.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- Coinbase. What is a Fully Diluted Valuation (FDV) in crypto? (opens in a new tab) Checked .
- Coinbase. Tokenomics 101 (opens in a new tab) Checked .
- Binance Research. Tokenomics Deep Dive (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.