Fully Diluted Valuation: How FDV Differs from Market Cap | NOONOO TRADING

Coin-information pages often show an unfamiliar FDV figure beside market capitalization. It is usually much larger. What does it mean, and why should it be checked before investing?

What is FDV?

FDV stands for Fully Diluted Valuation. Its calculation is straightforward.

FDV = current price per coin × maximum supply, including coins that may be released later.

It values the entire coin supply as if all future units had already been issued. It asks what the full supply would be worth at today's unit price.

How it differs from market capitalization

The distinction is whether only currently circulating units or future units are counted. Market capitalization uses current circulating supply, while FDV uses the entire maximum supply.

Why be cautious about a high FDV?

FDV far above market cap indicates substantial future supply and potential selling pressure. Each release increases available supply; if demand does not keep pace, price may face pressure.

• A higher FDV-to-market-cap ratio indicates a larger share outside current circulation.
• Check unlock dates and recipients, such as the team, investors or foundation. See tokenomics.
• FDV can be used in inflated marketing to make a project appear highly valuable. Do not be swayed by the number alone.

Recap

FDV values future supply at the current price, while market cap values current circulation. View them together to assess how much additional supply may enter the market. A high or low FDV alone does not establish quality; evaluate utility, demand and unlock schedules together.

This article provides information, not investment recommendations. Virtual assets can lose principal, and no one can know future prices with certainty. Investment decisions and responsibility remain your own.