What is fully diluted valuation? FDV versus market cap in crypto
By SendPay Business · · 2 min read
Fully diluted valuation (FDV) is what a crypto token would be worth in total if every token that will ever exist were already in circulation, at today's price. It sits alongside market cap, which counts only the tokens circulating now.
How FDV is worked out
- FDV = token price × maximum supply (or total supply if there is no fixed maximum).
- Market cap = token price × circulating supply.
- Example: a £2 token with 250 million circulating and a 1 billion maximum has a £500 million market cap and a £2 billion FDV.
Why the two differ
Many tokens launch with only part of the supply circulating. The rest is held back for the team, early investors, a treasury or future rewards, and released over months or years. Until then, it counts towards FDV but not market cap.
Why the gap matters
When locked tokens are released, there are more tokens sharing the same demand. If demand doesn't keep up, the price can fall. A large FDV compared with market cap is a reason to read the project's unlock schedule and tokenomics before buying.
Limits of FDV
FDV assumes today's price would hold with every token circulating, which is rarely realistic. Some coins have no maximum supply at all, so their FDV changes as new coins are issued. Treat FDV as one measure among several, not a forecast.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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How do I work out a token's FDV?
Enter its price, circulating supply and maximum supply into the free calculator.
Fully diluted valuation calculator →What is crypto market cap?
A coin's price multiplied by the number of coins in circulation.
Market cap →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.