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Why Is a High FDV Compared to Market Cap a Potential Warning Sign?

Large difference means many unreleased tokens, representing future selling pressure that can crash the price.
Greeks.Live28.10.25

Why Is a High FDV Compared to Market Cap a Potential Warning Sign?

A high Fully Diluted Valuation (FDV) relative to the current Market Cap indicates that a significant number of tokens are not yet in circulation. These unreleased tokens represent a massive potential supply increase in the future, often due to vesting schedules for founders or early investors.

When these tokens are released, they can be sold, creating substantial selling pressure that depresses the price.

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