FDV stands for Fully Diluted Valuation. It's one of the most misunderstood numbers in crypto.
Market cap = current price × circulating supply. It tells you what the project is worth today.
FDV = current price × maximum total supply. It tells you what the project would be worth if every token that will ever exist was already circulating.
Why does this matter? Because most tokens have future unlocks. Team allocations. Investor vesting. Staking rewards. Ecosystem funds.
A coin with a $100 million market cap but a $2 billion FDV means: if all those locked tokens entered circulation at today's price, the project would be valued at $2 billion.
That doesn't mean the price stays the same when tokens unlock. It usually doesn't. New supply creates selling pressure.
So when you look at a token, check both numbers. If FDV is much higher than market cap, ask: when do the unlocks happen? How large are they? Who's receiving them?
That's the difference between reading a price and understanding the supply mechanics behind it.
#CryptoEducation #FDV #Tokenomic #binanacesquare #EducationalContent
Market cap = current price × circulating supply. It tells you what the project is worth today.
FDV = current price × maximum total supply. It tells you what the project would be worth if every token that will ever exist was already circulating.
Why does this matter? Because most tokens have future unlocks. Team allocations. Investor vesting. Staking rewards. Ecosystem funds.
A coin with a $100 million market cap but a $2 billion FDV means: if all those locked tokens entered circulation at today's price, the project would be valued at $2 billion.
That doesn't mean the price stays the same when tokens unlock. It usually doesn't. New supply creates selling pressure.
So when you look at a token, check both numbers. If FDV is much higher than market cap, ask: when do the unlocks happen? How large are they? Who's receiving them?
That's the difference between reading a price and understanding the supply mechanics behind it.
#CryptoEducation #FDV #Tokenomic #binanacesquare #EducationalContent
