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

HTX Strengthens Global Compliance and Showcases at TOKEN2049

HTX has made significant strides in global compliance initiatives while participating in TOKEN2049, a major event in the crypto industry held in Singapore.

user avatarDiego Alvarez

SEC Files Charges Against Richard Heart for Fraud

The SEC charged Richard Heart and his entities with conducting unregistered offerings of crypto asset securities.

user avatarMaria Fernandez

HTX Marks 13th Anniversary with Major Celebrations and Trading Events

HTX celebrated its 13th anniversary with major events, including the Anniversary Carnival and Trading Championship 3, highlighting its resilience in the crypto market.

user avatarKenji Takahashi

Richard Heart Arrested in Istanbul on Interpol Charges

Richard Heart, founder of Hex cryptocurrency, was detained in Istanbul under an Interpol Red Notice for aggravated tax fraud.

user avatarGustavo Mendoza

MediaMarkt Saturn Ceases Sales of Ledger Devices Amid Security Concerns

MediaMarkt Saturn has stopped selling Ledger devices due to security concerns following a customer report of a hidden implant.

user avatarRajesh Kumar

Binance Expands into Traditional Finance as Mining Pool Closes

As Binance prepares to shut down its mining pool, the exchange is expanding into traditional finance by providing access to over 7,000 US stocks and ETFs for customers outside the United States.

user avatarMiguel Rodriguez

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.