Fully Diluted Valuation
The Fully Diluted Valuation is the theoretical market cap of a token if all its planned tokens (total supply) were issued at the current price.
About this metric
What does Fully Diluted Valuation tell you?
FDV helps investors understand the potential size and value of a token, which can be useful for comparing similar assets and assessing the risk of dilution. Note: A token can be related to multiple chains (i.e. MATIC is connected to Polygon zkEVM and Polygon PoS)
How is Fully Diluted Valuation calculated?
At deltapools, we calculate the Fully Diluted Valuation (FDV) by multiplying the total token supply by the current market price of the token. The total token supply includes all tokens that are planned to be issued, not just those currently in circulation. By using the current market price, we provide an accurate measure of the theoretical market cap if all tokens were issued at that price.
How can Fully Diluted Valuation be gamed?
FDV can be misleading if a large portion of the total supply is locked, vested, or otherwise not in circulation (low-float token). Investors should consider the token's issuance schedule and lock-up periods when evaluating FDV.
How to interpret Fully Diluted Valuation?
A general high FDV indicates that investors value this token highly. A high FDV relative to the current market cap (-> low issuance rate) may indicate potential dilution risk.
