
📊 What is the difference between Market Cap and FDV? When evaluating crypto projects, Market Cap (Market Capitalization) and FDV (Fully Diluted Valuation) are two distinct but important metrics. Market Cap is calculated by multiplying the number of tokens in circulation by the current token price, representing the total value of tokens currently available in the market. FDV, on the other hand, is the hypothetical value of the total or maximum token supply based on the current price. Therefore, it also accounts for tokens that will enter circulation in the future. For example, if a token is priced at $1 and 100 million tokens are in circulation, the Market Cap is $100 million. If the total supply is 1 billion tokens, the FDV is $1 billion. 📌 While Market Cap helps you understand a project’s current market value, FDV is crucial for assessing the potential dilution risk from future supply increases. Therefore, when evaluating a project, it’s essential to look not only at Market Cap but also at FDV, token unlock schedules, and the overall supply structure. #MarketCap #FDV #Crypto #Blockchain
