Fully Diluted Valuation (FDV) is the total value of a crypto project if all its tokens were in circulation.
The Formula
FDV = Current Price × Total Maximum Supply
Why FDV is a Warning Signal
If a project has a $100M Market Cap but a $1B FDV, it means only 10% of tokens are currently circulating. The other 90% will eventually be 'unlocked' and sold, which can create massive sell pressure on the price. Always compare these two numbers on TokenRadar to understand the potential for future inflation.
Market Cap and FDV Side by Side
Market cap tells you what the circulating tokens are worth today. FDV tells you what the project would be worth if all possible tokens were already circulating at the current price. The gap between the two is one of the fastest ways to identify future supply pressure.
| Signal | Interpretation |
|---|---|
| Market cap near FDV | Most supply is already circulating. Future unlock pressure may be lower. |
| FDV much higher than market cap | A large share of supply is still locked, reserved, or not yet emitted. |
| Low float and high FDV | Price can rise quickly, but future dilution risk is high. |
| Unlock schedule unknown | The valuation is harder to trust because future supply is unclear. |
Why FDV Alone Can Mislead
A high FDV does not automatically mean a token is bad. Some networks have long emission schedules, strong demand, or locked tokens that are unlikely to hit the market quickly. The risk appears when FDV is high, circulating float is low, unlocks are near, and token utility is not strong enough to absorb new supply.
How TokenRadar Applies This
TokenRadar compares market cap, total supply, circulating supply, unlock pressure, and category peers. A token with a cheap unit price can still be expensive if the FDV is already pricing in years of growth. Conversely, a high unit price can be reasonable if supply is scarce and circulating ownership is broad.
Investor Checklist
Before relying on any valuation, ask four questions: what percentage of supply is circulating, when do the next unlocks occur, who receives those unlocks, and what demand source is expected to absorb them? If you cannot answer those questions, the FDV gap should be treated as a risk input rather than a bullish upside story.