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The Money Desk · Blog
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What Is Fully Diluted Valuation (FDV), and How Does It Affect Token Launches?

FDV applies a token’s current price to a broader supply figure. Learn why that can exceed circulating market cap at launch—and what the metric leaves out.
From TheFinanceBase Team3 min to read

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Fully diluted valuation (FDV) estimates a token’s market value if a defined broad supply—often its maximum supply—were priced at today’s token price. Circulating market capitalization uses only the tokens counted as circulating. At a launch with a small circulating float, that difference can make FDV much larger, but FDV does not mean all tokens are tradeable now or predict what the price will be as supply changes.

FDV and circulating market cap use different supply figures

Both figures multiply a token price by a supply measure. The distinction is the supply in the calculation:

  • Circulating market capitalization: current token price × circulating supply.
  • Fully diluted valuation: current token price × a broader supply measure, commonly maximum supply or, depending on the provider and methodology, total supply.

Binance Academy defines FDV using maximum supply; other providers may use total supply, particularly when maximum supply is not fixed. Check the provider’s definition before comparing figures. Binance Academy’s glossary was updated August 24, 2026; CoinGecko’s explanation discusses supply changes through minting and burning and was updated June 9, 2025.

How to calculate FDV

Use the token price and the supply basis stated by the data provider or project. For example, if a token’s hypothetical price is $2 and its stated maximum supply is 100 million tokens, its FDV on a maximum-supply basis is $200 million. If 10 million tokens are counted as circulating, circulating market capitalization at the same hypothetical price is $20 million.

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These figures are arithmetic illustrations, not a prediction that the token will remain at $2 when more supply becomes available. FDV holds the price constant in the calculation; actual market price and demand can change.

Why FDV can look especially large at a token launch

A newly launched token may have only a fraction of its total or maximum supply counted as circulating. Multiplying the quoted price by that limited float yields circulating market cap; multiplying it by a much larger supply basis yields a higher FDV. The gap tells you that the metrics use different supply figures. It does not, by itself, prove that a token is overvalued or that its price will fall.

FDV is useful as a scenario measure for considering how a current quoted price compares with a broader supply assumption. It does not mean every token is currently available to trade, that locked tokens will unlock at once, or that the present price could be maintained as supply grows.

What to check alongside FDV

Identify the supply basis

Find out whether the quoted FDV uses maximum supply or total supply, and how the source defines circulating supply. Providers can classify supply differently; Tokenomist notes that there is no universal industry standard for supply metrics and sets out its own methodology in its methodology. When comparing tokens, use the same provider and definitions where possible, and note the source and date because supply figures can change.

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Read the issuance and unlock schedule

FDV alone does not show when vested, locked, or otherwise unreleased tokens may enter circulation. Check the project’s disclosed issuance plan and token unlock schedule for timing and amounts. Future supply may be uncertain when schedules are not fixed, and ongoing minting or burns can also change the supply figures used in valuation metrics. Crypto.com’s FDV glossary describes the limits of the metric when release timing is uncertain.

Compare the figures without treating them as a forecast

For each launch, note the provider’s FDV supply input, circulating supply, the resulting difference between circulating market cap and FDV, and any disclosed future issuance or unlock timing. Keep in mind that FDV’s arithmetic applies today’s price to a broader supply figure; it does not model the price response to changing supply or demand. For a broader valuation framework, the CFA Institute’s cryptoasset valuation guide discusses circulating and fully diluted market capitalization as distinct measures.

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What FDV can—and cannot—tell you

FDV can show how a token’s present quoted price translates into a value under a stated broader-supply scenario. It cannot establish what all tokens are worth collectively at that price, when unreleased tokens will enter circulation, or whether market demand will absorb additional supply at the same price. Treat it as one context figure, interpreted with its supply definition and the project’s issuance disclosures—not as a standalone investment signal.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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