💡 Market Cap vs. FDV: Why a “Cheap” Coin May Not Be Cheap

$BTC
A crypto token can have a very low price and still have a very high valuation. One reason is token supply.
Here’s the simple difference 👇
🔹 Market Cap
Current Price × Circulating Supply
It represents the approximate current value based on tokens already circulating.
🔹 FDV (Fully Diluted Valuation)
Current Price × Maximum Supply
It estimates the value if the maximum token supply were in circulation.
📌 Why does the gap matter?
If a project has a relatively small Market Cap but a much larger FDV, a significant amount of supply may still be locked or unreleased.
When more tokens enter circulation, the increased supply can create additional selling pressure if demand doesn't grow at the same pace.
⚠️ Important: FDV is only one metric. It should be considered alongside tokenomics, trading volume, liquidity, project fundamentals, and unlock schedules.
💭 Key lesson:
A low token price does NOT automatically mean a token is cheap.
Always look beyond the price tag.
Educational content only. Not financial advice. Do your own research.
Hashtags:
#CryptoEducation #FDV #MarketCap #Tokenomics #CryptoBasics #BinanceSquare #Crypto