Foundations · Chapter 6 of 31
Market cap vs fully diluted valuation
The difference between what is circulating today and what the token could be worth once all supply is issued.
Market cap is the price times the circulating supply, the tokens in the market today. Fully diluted valuation (FDV) uses the total supply that will eventually exist, including locked and not-yet-issued tokens.
Why the gap matters
A large gap between market cap and FDV means a lot of supply is still to come. As those tokens unlock, they can add selling pressure even if demand stays flat.
Comparing projects
Two tokens with the same market cap can have very different FDVs. Looking at both gives a fuller picture of how richly a token is valued.
How to read it here
When you value a holding, remember that a low price is not cheap if a flood of locked supply is waiting to be released.
Now watch this signal update in real time across the market.
See it liveEducational content, not financial advice.