Definition
FDV, short for fully diluted valuation, is a concept that estimates the total market value of a crypto asset assuming every token that can ever exist is already issued and tradable at the current market price. It is calculated by multiplying the maximum or total token supply defined in the tokenomics by the current token price, regardless of how many tokens are actually circulating. FDV is distinct from Market Cap, which typically uses only the Circulating Supply in its calculation. As a result, FDV often appears much larger than Market Cap for newer or heavily vested projects, especially in the altcoin segment.
In decentralized finance (DeFi) and broader crypto markets, FDV is used as a high-level indicator of how expensive a project might be if all tokens eventually unlock. For assets like Bitcoin, where most of the eventual supply is already circulating and issuance rules are transparent, FDV and Market Cap can be relatively close. For many altcoin projects, however, FDV highlights the impact of future token releases, vesting schedules, and incentive programs embedded in their tokenomics. FDV remains a theoretical metric, not a guarantee of future value, because it assumes the current price would hold even after all tokens enter circulation.
Context and Usage
FDV is commonly referenced alongside Market Cap and Circulating Supply when evaluating the scale and potential dilution of a crypto asset. In DeFi, where complex tokenomics structures are frequent, FDV helps contextualize how much value the market is implicitly assigning to the project if every planned token is eventually released. A very high FDV relative to current Market Cap can signal that a large portion of the supply is still locked, reserved, or unissued.
Because FDV is derived from the maximum supply, it is especially relevant for altcoin projects with long emission schedules, team allocations, and ecosystem incentives. For established assets such as Bitcoin, FDV is more stable and closely tied to its predictable issuance curve. Overall, FDV functions as a conceptual lens on long-term valuation and dilution rather than a direct measure of present-day market size.