FDV vs Market Cap: The Number Crypto Investors Often Misread
A crypto project’s market cap can look relatively small while its fully diluted valuation (FDV) is several times larger. The difference comes from tokens that haven’t entered circulation yet, including allocations reserved for teams, investors, ecosystems or future rewards. This matters because a low circulating supply can make a token appear scarce today, while future token releases could significantly increase supply. Looking only at market cap therefore doesn’t always tell the full story about how highly a project is valued. Should FDV be given as much attention as market cap when investors compare different crypto projects?
