๐ Market Cap vs FDV โ Whatโs the Difference?
When analyzing a crypto project, Market Cap and FDV (Fully Diluted Valuation) are two important metrics you should understand.
๐น Market Cap
Market Cap = Current Price ร Circulating Supply
It tells you the approximate current value of all coins/tokens that are currently circulating.
๐น FDV (Fully Diluted Valuation)
FDV = Current Price ร Maximum/Total Supply
It estimates what the project's valuation would be if all tokens were already in circulation.
๐ Example:
Suppose a token is trading at $1
Circulating Supply = 20M
Maximum Supply = 100M
โก๏ธ Market Cap = $20M
โก๏ธ FDV = $100M
โ ๏ธ Why does this matter?
If Market Cap is much smaller than FDV, a large number of tokens may still be waiting to enter the market.
More token unlocks โ More potential selling pressure โ Possible impact on price.
๐ก Pro Tip:
Don't judge a coin only by its price. Always check Market Cap + FDV + Token Unlocks + Circulating Supply before making an investment decision.
๐ Learn the fundamentals before you trade.
When analyzing a crypto project, Market Cap and FDV (Fully Diluted Valuation) are two important metrics you should understand.
๐น Market Cap
Market Cap = Current Price ร Circulating Supply
It tells you the approximate current value of all coins/tokens that are currently circulating.
๐น FDV (Fully Diluted Valuation)
FDV = Current Price ร Maximum/Total Supply
It estimates what the project's valuation would be if all tokens were already in circulation.
๐ Example:
Suppose a token is trading at $1
Circulating Supply = 20M
Maximum Supply = 100M
โก๏ธ Market Cap = $20M
โก๏ธ FDV = $100M
โ ๏ธ Why does this matter?
If Market Cap is much smaller than FDV, a large number of tokens may still be waiting to enter the market.
More token unlocks โ More potential selling pressure โ Possible impact on price.
๐ก Pro Tip:
Don't judge a coin only by its price. Always check Market Cap + FDV + Token Unlocks + Circulating Supply before making an investment decision.
๐ Learn the fundamentals before you trade.