Fully Diluted Valuation (FDV)

Fully diluted valuation, usually shortened to FDV, multiplies a token's current price by its maximum or total eventual supply rather than by the supply circulating today. It answers one narrow question: what the project would be valued at if every token that can exist already existed at today's price. Comparing FDV with market capitalisation shows how much supply is still to be released through unlocks, emissions or mining, and that gap can be large for young projects. FDV is a snapshot of arithmetic, not a forecast. Supply schedules change, some tokens have no maximum supply at all, and the calculation assumes the price stays constant while supply grows, which is never how markets behave.