Why Is ‘Fully Diluted Valuation’ (FDV) Often Higher than Market Cap?
FDV is calculated using the total supply (or maximum supply) of a coin, while Market Cap uses the circulating supply. Since total supply often includes tokens that are locked or not yet minted, FDV represents the asset's value if all tokens were in circulation, making it typically higher.
Glossar
Market Cap
Capitalization ⎊ The market capitalization, often abbreviated as market cap, represents the total dollar market value of a cryptocurrency, options contract, or financial derivative.
FDV
Valuation ⎊ Fully Diluted Valuation (FDV) represents the theoretical market capitalization of a cryptocurrency project if all tokens were currently in circulation.
Cap
Strike ⎊ Cap, within cryptocurrency derivatives, denotes the predetermined price level at which an option contract ⎊ typically a call or put ⎊ may be exercised.
Total Supply
Circulation ⎊ Total Supply, within cryptocurrency, defines the amount of a given digital asset currently available for public use and trading, representing a critical metric for assessing market capitalization and potential price dynamics.