Market cap vs FDV: what's the difference?
Two valuation numbers that look similar but tell very different stories. Confusing them is how traders miss hidden dilution.
The short version
Two valuation numbers that look similar but tell very different stories. Confusing them is how traders miss hidden dilution.
- Market cap: Circulating supply × price — the value of currently tradable tokens.
- FDV: Total supply × price — the value if every token, including locked ones, were circulating.
Side by side
| Dimension | Market cap | FDV |
|---|---|---|
| Supply used | Circulating only | Total (incl. locked/vesting) |
| What it reveals | Current valuation | Future dilution risk |
| When they match | When 100% of supply circulates | Same — FDV = mcap at full float |
| Red flag | High mcap on thin liquidity | Low mcap but huge FDV (unlock cliff) |
Which one should you care about?
Key idea — Use market cap for the now and FDV for what is coming. A big gap between them means large supply is waiting to hit the market — read the tokenomics before holding.
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Education only — not financial advice. Memecoins are extremely high risk.
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