Market Metrics
Crypto Market Cap vs FDV: What's the Difference?
Market cap and fully diluted valuation (FDV) both multiply a token's price by a supply figure. The difference is which supply: what's circulating now, or the maximum that could ever exist.
5 min read
All prices and supplies below are illustrative examples.
Market capitalization
Market cap estimates the value of all tokens currently in circulation at the latest price. Circulating supply excludes tokens that are locked, unvested or held in reserves not yet released.
Market cap = Token price × Circulating supply
Fully diluted valuation
FDV estimates the value if every token that can ever exist were in circulation at today's price. Projects define this using maximum supply or, if there is no cap, total supply.
FDV = Token price × Maximum supply Circulating % = Circulating supply ÷ Maximum supply × 100
Worked example
Worked example
A token priced at $2.00
- Circulating supply 400 million → market cap = $800 million
- Maximum supply 1 billion → FDV = $2 billion
- Circulating share = 40%
Sixty percent of the eventual supply isn't circulating yet.
Working backwards: implied price
You can also ask what price a token would need for a given market cap: Price = Market cap ÷ Circulating supply. The Token Price Calculator does this for a hypothetical market cap you choose.
Why the numbers differ
- Team, investor and foundation allocations often unlock on a vesting schedule.
- Some tokens are released gradually as rewards or emissions.
- Tokens can be burned, reducing supply over time.
If more tokens enter circulation while demand stays the same, each token represents a smaller share of the project. That's why some people look at both figures together.
Limitations of these metrics
- Market cap is not the amount of money invested, and it's not what holders could sell for — selling large amounts moves the price.
- Thinly traded tokens can show large market caps from small trades.
- Supply data reported by different sources can disagree.
- Neither number says whether a token is fairly valued.
Calculators
- Crypto Market Cap Calculator: price × circulating supply.
- FDV Calculator: price × maximum supply, plus circulating share.
- Token Price Calculator: implied price for a market cap you choose.
Run your own numbers
Calculate market capitalization from price and circulating supply.
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