What it is
Fully diluted valuation (FDV) is a metric used in cryptocurrency to estimate a project's total market capitalization if every token ever created or planned for release were actively circulating. It is calculated by multiplying the maximum supply of a token by its current market price. This theoretical value contrasts with the current market cap, which only considers the tokens currently in circulation, providing a long-term perspective on a project's potential scale.
FDV is often discussed when evaluating new projects or those with significant future token releases, such as through vesting schedules or mining rewards. A high FDV compared to a current market cap indicates a large number of tokens are yet to enter circulation, which can put downward pressure on prices as supply increases. Investors use FDV to assess potential future price dilution and to compare projects on a "fully diluted" basis.
Why it matters
FDV helps retail investors understand the potential impact of future token supply increases on a token's price, aiding long-term investment decisions.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice