Fully Diluted Valuation (FDV) is calculated by multiplying the total supply of tokens (those existing plus those yet to be released) by the current price of a single token.
The concept of FDV is important for investors and market analysts because it gives a sense of the potential total value of a cryptocurrency if all planned tokens are issued and if the current prices hold.
This can be especially significant for understanding the potential market saturation and price impact in projects where a significant portion of tokens has not yet been released to the public. Comparing FDV with the current market capitalization, which only considers tokens currently in circulation, can provide insights into the future supply and potential inflationary pressures on the token price.
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