What is the difference between market cap and FDV?
Short answer
Market cap is the circulating supply multiplied by price — what the currently tradable tokens are collectively valued at. Fully Diluted Valuation (FDV) uses the total supply, showing what the valuation would be if every token, including locked and vesting ones, were in the market.
The gap between them reveals hidden dilution. A low market cap with a sky-high FDV means a large amount of supply is waiting to hit the market and can crush the price.
Related questions
Which number should I look at?
Both. Market cap tells you the current valuation; FDV tells you the future dilution risk. A big gap is a warning to read the tokenomics.
Do memecoins usually have FDV equal to market cap?
Often, because many fix 100% of supply at launch. But always verify — a live mint authority or vesting schedule can make FDV much higher.
Why does a low mcap, high FDV worry traders?
It signals scheduled unlocks or large locked allocations that will add sell pressure later, diluting holders when they release.
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Education only — not financial advice. Memecoins are extremely high risk.
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