In the crypto world, Fully Diluted Valuation (FDV) is a key metric for evaluating a token’s potential. Today, 06/02/2025, at 17:02:33, understanding FDV is crucial for informed investment decisions.
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What is FDV?
FDV stands for Fully Diluted Valuation. It represents the market capitalization of a crypto project if all possible tokens were in circulation. Essentially, it’s a prediction of an asset’s future price.
How to Calculate FDV
FDV is calculated by multiplying the token price by the total supply of tokens: FDV = Token Price x Total Supply.
FDV vs. Market Cap
Market capitalization reflects the current valuation based on circulating supply, while FDV considers the total potential supply. When all tokens are in circulation, FDV and market cap are equal.
Why FDV Matters
Understanding FDV helps investors assess the potential growth and value of a cryptocurrency project. It provides insights into the long-term valuation if all tokens are released.
Other Important Metrics
Besides FDV, other metrics are useful such as:
- Market Capitalization: Price x Circulating Supply.
- Total Value Locked (TVL): Value of assets locked in a protocol.
