Fully Diluted Valuation (FDV)

What is Fully Diluted Valuation (FDV)?

This is the total capitalization of a cryptocurrency. It is calculated not only based on the number of tokens already issued but also taking into account tokens that will ever be issued, including those that are in the process of mining, staking, or have not yet been issued for some other reason.

Why is FDV important?

FDV helps to estimate the full market capitalization of cryptocurrency, taking into account all tokens that will be issued in the future. This gives an idea of the potential level of inflation and its impact on asset prices. If a project has a low proportion of tokens issued from the maximum possible supply but at the same time a high FDV, this may signal the potential for significant dilution of the value of tokens in the future, as the entry of new tokens into the market will create additional inflationary pressure.

How is FDV calculated?

It is calculated by the formula:

Fully diluted value = max supply * current price

price is the current price value in USD

max supply is the total number of coins or tokens that can be created or issued for a particular cryptocurrency. It is usually determined when creating a genesis block and represents the total number of coins that will ever be mined. However, not all cryptocurrencies have a strictly limited upper limit. For coins without a predetermined upper supply limit, it is impossible to accurately calculate the FDV, since there is no fixed maximum total supply of tokens.