Market cap vs fully diluted valuation: key differences
Market cap uses circulating supply while FDV uses total supply, so a token can show two very different valuations. A wide gap signals future tokens.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Market cap is price times circulating supply.
- FDV is price times total or maximum supply.
- A wide gap means many tokens are not yet tradable.
- FDV uses today's price and is not a forecast.
The two figures usually appear together on an asset page, and the gap shows how much supply has yet to enter the market.
Market cap vs FDV at a glance
Market cap multiplies the current price by the circulating supply. Fully diluted valuation multiplies that same price by the total or maximum supply. Circulating supply counts tokens people can trade now, while total supply includes locked or reserved tokens.
Why the gap matters
When most tokens circulate, market cap and FDV stay close. When a large share is locked or reserved, circulating supply is much smaller than total supply, so market cap stays lower while FDV rises. A wide gap between market cap and FDV signals that many tokens are not yet in circulation.
Where to find both metrics
Large crypto data platforms usually list market cap and FDV on the same asset page. The market cap line uses circulating supply, and the FDV line uses total or maximum supply. You can compare the two numbers and check the supply details behind each.
- Open the asset page on a major data platform.
- Find the market cap line and note its circulating supply.
- Find the FDV line and note its total supply.
- Compare the two numbers and read the supply details.
What are the limitations?
FDV is a snapshot that uses today's price and assumes every token exists at that same price. Market cap can mislead when most tokens are locked or not yet circulating, because it values only the small tradable supply. Neither metric forecasts future value.
Frequently asked questions
Total or maximum supply is usually larger than circulating supply. When a project holds tokens in reserve or releases them on a schedule, FDV includes those tokens while market cap does not.
Burned tokens leave circulation, but data platforms may not subtract them from total supply. FDV includes them only if the reported supply still counts them.
No. FDV multiplies today's price by total supply. It does not model future supply changes or future demand.
No. Total value locked measures crypto assets deposited in a protocol. FDV measures a token's price times its total supply.
