Fully Diluted Value

Reading Time: < 1 minute

Fully diluted value (FDV) is the total market capitalization value of a cryptocurrency. FDV is the value of a project if all the tokens have been circulated in the market.

You can calculate FDV by multiplying the maximum number of tokens or coins by the current price per unit. For example, if a coin has a maximum supply of 1 million coins and the current price per coin is $5, then the FDV of the coin is $5 million.

FDV can help you decide to invest in a project by comparing the FDV with its competitors. Ideally, the difference between FDV and the market capitalization of a project should not be too large. A large gap indicates that there are still many tokens that have not entered the market and this creates high selling pressure in the future.

Explore Other Vocabulary ‚Üí