Fully Diluted Valuation (FDV)

Fully Diluted Valuation (FDV) refers to the market capitalization of a project or token, assuming all tokens that could potentially exist are already in circulation. It calculates the value of the asset by factoring in the total supply of tokens, including those that have not yet been issued or unlocked.

Mathematically, FDV is defined as:

$$FDV = PricePerToken ×TotalSupplyOfTokens$$

Where price per token refers to the current market price of the token, and total supply of tokens includes both the circulating supply (tokens currently in the market) and any tokens that are locked or scheduled to be released in the future.

FDV is a valuable and fundamental metric that provides insight into the valuation of a project or asset, particularly helping traders assess its long-term value. While the circulating market cap only reflects the current supply of tokens, FDV shows what the market cap would be if all tokens were in circulation, which can meaningfully affect price expectations and sentiment.