# What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap? ▴ Learn

**Published:** 2025-11-17
**Categories:** Learn

---

## What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap?

Circulating market cap is the total value of all tokens currently available and trading in the public market. Fully diluted market cap (FDMC) is the total value if the entire maximum supply of tokens were in circulation, including tokens that are locked, vested, or not yet minted.

FDMC is a measure of the project's long-term valuation.

What Is a “Fully Diluted Valuation” (FDV) and Why Is It Important for New Tokens?

How Does Accelerated Vesting Impact a Project’s Circulating Supply and Market Capitalization?

Why Is ‘Fully Diluted Valuation’ (FDV) Often Higher than Market Cap?

Why Might a High FDV Compared to a Low Circulating Market Cap Be a Red Flag for Investors?

## Discover More

- 
### [What Is the Difference between Physical Settlement and Cash Settlement after a Credit Event?](https://crypto.greeks.live/learn/what-is-the-difference-between-physical-settlement-and-cash-settlement-after-a-credit-event/)
![Layers of smooth circular planes in slate gray deep navy and mint green suggest complex financial layering reminiscent of options contract strata. A sharp diagonal reflective element slices through the composition signifying volatility skew or a strike price barrier in decentralized finance. This abstract visualization captures the interplay between underlying crypto asset movement and structured derivative payoff profiles such as European vs American option expiration dynamics. The composition implies non-linear risk exposure characteristic of delta hedging strategies and managing imperfect synthetic position replication within Automated Market Makers. Dark voids underscore the opaque nature of off exchange dark pool liquidity and the search for optimal RFQ execution across fragmented order books.](https://crypto.greeks.live/wp-content/uploads/2025/10/Abstract-Geometrical-Decomposition-of-Digital-Asset-Volatility-Surface-and-Option-Contract-Structures.jpg)

Physical settlement involves swapping the actual defaulted bond for cash, while cash settlement involves a cash payment of the loss.

- 
### [What Is the Difference between an OTC Derivative and a Listed Derivative in Terms of Blockchain Settlement?](https://crypto.greeks.live/learn/what-is-the-difference-between-an-otc-derivative-and-a-listed-derivative-in-terms-of-blockchain-settlement/)
![The central artifact, displaying teal passivation layers flanking a dark blue substrate, suggests a microelectronic component fundamental to high-frequency trading infrastructure or secure enclave computation within blockchain architecture. This visual metaphor aligns with the intrinsic complexity of synthesizing reliable on-chain governance mechanisms against adversarial flash loan exploits. The surrounding undulating grey and dark surfaces evoke the layered volatility surface inherent in deep options hedging strategies for stablecoin yield farming. It symbolizes the delicate equilibrium required when managing collateralized debt positions against rapid market microstructure shifts, emphasizing the need for atomic settlement and minimized slippage across aggregated liquidity pools. The design reflects layered security protocols protecting decentralized exchange order books.](https://crypto.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-In-Decentralized-Finance-Protocol-Lattice-Structure-Analysis.jpg)

OTC derivatives are bespoke and benefit from complex smart contract automation; listed derivatives are standardized and gain from faster clearing.

- 
### [What Is the Difference between a ‘Quoted Price’ and a Market maker’S’theoretical Fair Value’?](https://crypto.greeks.live/learn/what-is-the-difference-between-a-quoted-price-and-a-market-makers-theoretical-fair-value/)
![This visualization presents a symmetrical, cross-sectioned mechanical apparatus against absolute black, illuminated internally with contrasting neon cyan and warm beige luminescence. It conceptually models the complex interaction within a bifurcated liquidity pool mechanism vital for decentralized options protocol execution. The central, rounded components suggest a core settlement layer, perhaps representing a mechanism for automated market maker arbitrage between mirrored synthetic assets or a novel structure for two-sided collateralization. The surrounding metallic structures imply robust, secure smart contract architecture safeguarding underlying digital assets and facilitating efficient derivative pricing across disparate trading venues. This structure embodies the intricate mechanics of non-custodial settlement for complex yield generation strategies within the evolving DeFi ecosystem.](https://crypto.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Simulation-Demonstrating-Dual-Sided-Liquidity-Pool-Mechanism-in-Decentralized-Finance-Options.jpg)

The quoted price is the public transaction price; the fair value is the internal, model-derived price, with the spread covering the difference.

- 
### [Could a “Flippening” Event, Where Ethereum’S Market Cap Surpasses Bitcoin’s, Make Bitcoin Dominance an Obsolete Metric?](https://crypto.greeks.live/learn/could-a-flippening-event-where-ethereums-market-cap-surpasses-bitcoins-make-bitcoin-dominance-an-obsolete-metric/)
![A tripartite, sector-divided circular apparatus suggests a complex computational construct, perhaps representing volatility partitioning within a decentralized finance platform. The metallic armature below implies robust infrastructure foundational to high-frequency execution of exotic derivatives. Key segments display distinct chromatic values possibly signifying differing strike price buckets or implied volatility regimes influencing derivative pricing models like Black Scholes adaptations for decentralized exchanges DEXs. A thin linear element traverses the disk, symbolizing a reference point like the current spot price or a delta hedge trajectory across a liquidity pool or order book depth visualization related to perpetual futures contract expiration windows. This structure encapsulates concepts of implied move forecasting and risk parity allocation within DeFi options protocols managing underlying asset collateralization ratios.](https://crypto.greeks.live/wp-content/uploads/2025/10/Visualizing-Stochastic-Volatility-Surfaces-across-Crypto-Asset-Options-Settlement-Mechanisms.jpg)

The "flippening" wouldn't kill the metric, but would reduce its importance, forcing focus on ETH dominance or other measures.

- 
### [What Is the Difference between a Principal and an Agency Market Maker?](https://crypto.greeks.live/learn/what-is-the-difference-between-a-principal-and-an-agency-market-maker/)
![This rendering of a smooth, spheroidal sensor module against absolute black evokes the opaque interface layer shielding proprietary quantitative modeling algorithms governing decentralized finance derivative settlements. The prominent dark teal aperture suggests a sophisticated LiDAR or active stereo vision system essential for complex market microstructure analysis and automated trade execution across distributed ledger technology environments. This visual metaphor aligns with the conceptual framework of Black Box Hedging strategies, where internalized Machine Learning agents optimize option Greeks management within volatile cryptocurrency perpetual swaps markets, minimizing slippage through low-latency oracle data feeds and instant smart contract interactions. The metallic juncture symbolizes the secure cryptographic binding necessary for vesting tokenized synthetic assets, reflecting the infrastructure underpinning robust decentralized exchange order books and instantaneous risk parameter recalculations for exotic derivatives pricing models employing GARCH methodologies.](https://crypto.greeks.live/wp-content/uploads/2025/10/Robotic-Sensor-Array-Visualizing-Algorithmic-High-Frequency-Quant-Trading-Protocol-Execution.jpg)

Principal trades for profit, directly setting the spread; agency trades for clients, earning a commission.

- 
### [What Is the Difference between ASIC and GPU Mining Hardware?](https://crypto.greeks.live/learn/what-is-the-difference-between-asic-and-gpu-mining-hardware/)
![The high-contrast, dark rendering displays precision engineered metallic components suggesting the core infrastructure of a high-frequency trading engine or a secure hardware module for cold storage key management. Visible microscopic liquid droplets on the dark circuitry imply environmental stress testing or the volatile nature of securing on-chain assets. This visual metaphor encapsulates the physical layer underpinning sophisticated financial instruments like perpetual swaps and options settlement requiring atomic finality. Concepts like implied volatility surface mapping and efficient order book matching are symbolized by this stark, intricate mechanical interface, critical for mitigating slippage in complex yield farming strategies across layer-two scaling solutions. Ten keywords integrated include hardware security module delta hedging liquidity provision smart contract execution collateral management options Greeks basis trading zero-knowledge proof settlement finality.](https://crypto.greeks.live/wp-content/uploads/2025/10/Metallic-Hardware-Assembly-Unveiling-Low-Latency-Execution-in-Decentralized-Derivative-Protocols.jpg)

ASICs are highly efficient, single-purpose chips (e.g. for SHA-256). GPUs are less efficient but flexible, general-purpose processors.

- 
### [How Does the Risk of Rehypothecation Change for a Client with a Fully Paid-for Security versus One Held on Margin?](https://crypto.greeks.live/learn/how-does-the-risk-of-rehypothecation-change-for-a-client-with-a-fully-paid-for-security-versus-one-held-on-margin/)
![A highly detailed, photorealistic rendering depicts a central, matte-white ocular sphere resembling a DAO governance token interface, juxtaposed against fractured, translucent cyan structural elements suggesting complex infrastructure. This visual architecture embodies the abstract mechanics of decentralized finance DeFi, specifically illustrating the sensitive execution layer of high-frequency options trading within novel blockchain architectures. The exposed internal latticework implies sophisticated smart contract logic governing collateralization ratios and dynamic hedging strategies required for perpetual futures exposure management. Analyzing this apparatus reveals inherent counterparty risk mechanisms within automated market maker AMM liquidity pools, demanding robust oracle integration for accurate strike price settlement across DeFi derivatives ecosystems. The stark contrast against the void suggests the insulated, deterministic environment of on-chain settlement for complex financial engineering instruments.](https://crypto.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Sphere-Observing-Transparent-Cryogenic-Liquid-Swaps-in-Yield-Farming-Protocols.jpg)

Fully paid-for assets have zero rehypothecation risk; margined assets are exposed to the broker's credit risk up to 140% of the debit balance.

- 
### [What Is the Primary Difference between a Forward and a Futures Contract?](https://crypto.greeks.live/learn/what-is-the-primary-difference-between-a-forward-and-a-futures-contract/)
![A sleek, highly polished, pearlescent white orb is bisected by a glowing cyan-blue diagonal rift exposing intricate circuit pathways and a central luminescent teal aperture. This visual metaphor represents the secure encapsulation of high-frequency algorithmic trading strategies within decentralized finance DeFi security layers. The division suggests a moment of execution or a bifurcation point characteristic of contingent claim payoffs in complex structured products like synthetic asset options. The internal structure signifies the transparency of the underlying smart contract execution rails for underlying digital asset collateral management and automated market maker AMM functions. This visual emphasizes verifiable ledger integrity essential for trustless settlement of non-deliverable forwards or perpetual swaps requiring robust oracle integration and low latency execution environments for true cross-chain interoperability standards.](https://crypto.greeks.live/wp-content/uploads/2025/10/Cybernetic-Ocular-Aperture-Revealing-Tokenized-Derivation-Protocol-Infrastructure-Settlement-Mechanism.jpg)

Futures are standardized and exchange-traded; forwards are customized and OTC.

- 
### [What Is the Difference between a Covered and a Naked Option Writer?](https://crypto.greeks.live/learn/what-is-the-difference-between-a-covered-and-a-naked-option-writer/)
![The composition reveals a stark contrast between a luminous, textured beige plane, suggestive of uncollateralized ledger entries or transparent asset revelation, and a densely saturated teal metallic enclosure revealing internal structural components, resembling a hardware security module or cold storage device interface. This visual juxtaposition embodies the inherent duality in decentralized finance derivatives where underlying tokenization risks meet robust cryptographic security protocols. The exposed metallic element suggests a secure enclave for managing private keys or a specialized interface for requesting for quote RFQ interactions regarding complex perpetual swaps or synthetic asset constructs. The deep black negative space accentuates the focused illumination on the asset's housing, emphasizing the insulated nature of digital asset custody against systemic volatility inherent in options market making and structured finance vehicles traversing blockchain rails. Keywords include collateralization ratios synthetic asset replication immutable settlement layer private key ceremony digital asset custody RFQ fulfillment perpetual contract basis trade.](https://crypto.greeks.live/wp-content/uploads/2025/10/Teal-Encapsulation-of-Digital-Asset-Securitization-Mechanism-and-Option-Hedging-Exposure.jpg)

Covered writer holds the underlying asset to offset risk; Naked writer does not, facing potentially unlimited loss.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://crypto.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Learn",
            "item": "https://crypto.greeks.live/learn/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap?",
            "item": "https://crypto.greeks.live/learn/what-is-the-difference-between-fully-diluted-market-cap-and-circulating-market-cap/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "http://greeks.live#organization",
    "name": "Greeks.Live",
    "url": "http://greeks.live",
    "description": "About Greeks.live Greeks.live is a dedicated platform within the professional crypto trading ecosystem, powered by a proprietary Large Language Model (LLM) engine. Our mission is to provide traders with a decisive edge by synthesizing institutional-grade data, advanced analytics, and the foundational knowledge required to master them. The platform offers clear, data-driven analysis on key market areas, from options to RFQ trading. It serves as an extensive and dynamic repository of knowledge, answering critical questions and exploring complex trading strategies. While the information is LLM-generated and sourced from diverse, real-time market data, we urge traders to integrate these insights as one component of a comprehensive trading strategy. Greeks.live is designed as an advanced educational and analytical tool\u2014a foundation for building informed, data-driven trading decisions. Disclaimer The content on Greeks.live is generated using LLM technology and relies on publicly available market data. It is intended for informational and educational purposes and does not constitute financial advice. While we strive to provide accurate and reliable insights, the content may have inherent limitations in the fast-moving crypto market. All trading involves significant risk. We recommend cross-referencing with multiple sources and performing your own due diligence before making any financial decisions. Our Purpose Greeks.live is committed to fostering strategic proficiency, clarity, and transparency in the crypto options market through open access to institutional-grade tools and knowledge.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://crypto.greeks.live/wp-content/uploads/2025/10/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        },
        {
            "@type": "WebSite",
            "name": "RFQ Newsfeed",
            "url": "https://rfq.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Crypto Options Learning Directory",
            "url": "https://options.greeks.live"
        }
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Crypto Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Crypto Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Crypto Trading",
                "url": "https://greeks.live/",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Deribit Crypto Trading",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "OKX Crypto Trading",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "AI Crypto Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "http://greeks.live#organization"
                }
            }
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://crypto.greeks.live/learn/what-is-the-difference-between-fully-diluted-market-cap-and-circulating-market-cap/"
    },
    "headline": "What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap? \u25b4 Learn",
    "description": "Circulating cap is current tradable supply value; FDMC is the value of the entire maximum supply. \u25b4 Learn",
    "url": "https://crypto.greeks.live/learn/what-is-the-difference-between-fully-diluted-market-cap-and-circulating-market-cap/",
    "datePublished": "2025-11-17T03:11:02+00:00",
    "dateModified": "2025-11-17T03:11:02+00:00",
    "articleSection": [
        "Learn"
    ],
    "author": {
        "@id": "http://greeks.live#organization"
    },
    "publisher": {
        "@id": "http://greeks.live#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://crypto.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-On-Chain-Liquidity-Pool-Mechanisms-Supporting-Decentralized-Exchange-Settlement-Layers.jpg",
        "caption": "A close up highlights smooth, high gloss surfaces where a deep navy element curves against a pale, reflective interface connecting to a beige structural strut that traverses toward a soft teal orbital shape, all isolated by stark black negative space. This visually interprets the complex, stylized architecture required for robust decentralized finance DeFi settlement, particularly focusing on the interplay between spot liquidity and derived value instruments. The junction point signifies atomic swap execution or the precise integration layer between Layer 1 blockchain security and Layer 2 scaling solutions essential for throughput integrity. The beige structure mirrors the standardized nomenclature of collateralized debt positions securing stablecoin issuance or the underlying rail for delta-neutral hedging strategies employed in options volatility management against impermanent loss risk. The entire scene suggests the finely tuned engineering necessary to maintain arbitrage opportunities and enforce on chain solvency across various financial derivatives markets."
    },
    "keywords": [
        "Assessing Crypto Projects",
        "Circulating Market Cap",
        "Circulating Supply Value",
        "Crypto Financial Metrics",
        "Crypto Investment Analysis",
        "Crypto Metrics Deep Dive",
        "Cryptocurrency Market Terms",
        "Cryptocurrency Valuation",
        "FDMC versus Circulating Cap",
        "Fully Diluted Market Cap",
        "Future Token Inflation",
        "Locked Token Schedules",
        "Long Term Potential",
        "Long Term Valuation Metric",
        "Market Cap Calculation",
        "Market Cap Comparison",
        "Market Capitalization Metrics",
        "Maximum Supply Definition",
        "Project Valuation Benchmarks",
        "Publicly Traded Tokens",
        "Supply Cap Analysis",
        "Token Burning Effects",
        "Token Release Mechanisms",
        "Token Supply Dynamics",
        "Token Vesting Periods",
        "Tokenomics Explained",
        "Total Supply versus Circulating",
        "Understanding Crypto Metrics",
        "Understanding Token Dilution",
        "Vested Token Supply"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://crypto.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://crypto.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://crypto.greeks.live/learn/what-is-the-difference-between-fully-diluted-market-cap-and-circulating-market-cap/
