• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Why Fully Diluted Valuation Matters for Investors?

user avatar

by Giorgi Kostiuk

21 hours ago


Fully Diluted Valuation (FDV) has become a key concept in the cryptocurrency space, as it allows estimation of a project's total value if all its tokens are in circulation. Let's explore why this metric is important for investors and how it differs from market capitalization.

The Importance of Fully Diluted Valuation

FDV helps investors gauge the long-term potential of a cryptocurrency. Unlike market capitalization, which only reflects the value of circulating tokens, FDV considers the total supply. This makes it an essential tool for evaluating the scalability and growth of a crypto project.

Differences Between Fully Diluted Valuation and Market Cap

Market capitalization focuses on the current supply of tokens in circulation, while FDV looks at the full potential supply. For example, the current price of SUI is $2.18 with a circulating supply of 3.16B and a total supply of 10B tokens. This results in a market cap of $6.93B for SUI and an FDV of $21.87B.

Market capitalization is one of the most commonly used metrics to assess the value of a cryptocurrency.

Risks of Ignoring Fully Diluted Valuation

Overlooking FDV can lead to poor investment decisions. A project with a low market cap but a high FDV might seem undervalued. However, if a significant number of tokens are yet to be unlocked, the influx could lead to price drops. Investors should always consider FDV alongside other factors like adoption, utility, and token distribution.

Fully Diluted Valuation provides a more comprehensive view of a crypto project's potential value. Considering its impact on long-term prospects, it should be an important part of any investor's analysis in the cryptocurrency sphere.

0

Share

Other news

AI Investments Rise Sharply, Cryptocurrency Funding Declines

In Q1 2025, AI investments hit $20 billion, while crypto funding reached just $861 million.

user avatarGiorgi Kostiuk

2 minutes ago

KuCoin Unveils Market Trends and Trading Strategies Report

KuCoin releases a report on March market trends and trading strategies, featuring historical analysis and key events calendar.

user avatarGiorgi Kostiuk

3 minutes ago

ETH/BTC at a Five-year Low: Prospects for Ethereum and Altcoins

The ETH/BTC ratio reached a historic low, raising questions about BTC dominance and the potential rise of altcoins.

user avatarGiorgi Kostiuk

4 minutes ago

Coinbase Blocks Trading of FLOKI, TURBO, and GIGA in New York

Coinbase to stop FLOKI, TURBO, GIGA trading in New York from April 14, 2025, due to routine asset review.

user avatarGiorgi Kostiuk

4 minutes ago

Coldware vs Binance Coin: Who Will Investors Choose in 2025?

Comparison of Coldware and Binance Coin prospects in decentralized technologies and Web3 for 2025.

user avatarGiorgi Kostiuk

5 minutes ago

Bitcoin Overcomes $83,000 as US Plans Crypto Legislation

Bitcoin surged past $83,000, boosted by anticipation of new US crypto legislation.

user avatarGiorgi Kostiuk

6 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

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.