Why Fully Diluted Valuation Matters for Crypto Investors

user avatar

by Giorgi Kostiuk

2 years ago

Fully Diluted Valuation (FDV) is a metric that considers the total market value of a crypto project if all its tokens were circulating.

Importance of FDV for Investors

FDV helps investors evaluate the long-term potential of a cryptocurrency by considering the maximum token supply. It highlights potential risks and rewards tied to future supply changes if a large portion of tokens is yet to be released.

Difference Between FDV and Market Cap

Market capitalization reflects the current value of circulating tokens, whereas FDV considers all possible tokens. For instance, the market cap of SUI at a price of $2.18 and circulation of 3.16B is $6.93B. The full valuation upon maximum issuance of 10B tokens is $21.87B.

Impact of Token Supply Changes on FDV

Changes in token supply directly impact FDV. The release of additional tokens increases FDV, potentially diluting the value of existing tokens. Monitoring tokenomics, like vesting schedules or staking rewards, is important as they can affect both FDV and market cap.

Understanding and analyzing FDV is crucial for making informed investment decisions in the crypto space. It helps assess a project's potential by considering its tokenomics and future supply changes.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Bybit Confirms Support for Avalanche v1150 Upgrade

Bybit has confirmed support for the Avalanche v1150 upgrade, ensuring continued compatibility for AVAX users.

user avatarTomas Novak

Bybit Launches OURAUSDT Pre-IPO Perpetual Contract

Bybit has launched OURAUSDT, a pre-IPO perpetual contract, allowing leveraged trading on Oura's implied valuation before its public listing.

user avatarKaterina Papadopoulou

Binance Expands Use of Tokenized Stocks for Margin Utility

Binance has introduced a new feature allowing users to use eligible bStocks as collateral in its MultiAssets Mode.

user avatarMaya Lundqvist

Binance Introduces 24/7 Foreign Exchange Perpetual Contracts

Binance has launched a new trading model for 24/7 trading of foreign exchange perpetual contracts, starting with a contract linked to the US dollar and Brazilian real.

user avatarLeo van der Veen

Ondo Finance Streamlines Institutional Stock Tokenization

Ondo Finance has introduced a new integration that simplifies the process of institutional stock tokenization by allowing direct contribution of existing equity inventory.

user avatarLi Weicheng

Investigation into Zondacrypto Founder’s Disappearance Intensifies

The investigation into the disappearance of Zondacrypto founder Sylwester Suszek has intensified as Polish police search a fuel depot linked to his last known whereabouts.

user avatarTenzin Dorje

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.