Market cap vs fully diluted value: what the gap means

Two numbers appear next to most tokens on market data sites: market capitalisation and fully diluted valuation (FDV). They are calculated from the same price but different supplies.

The definitions

• **Market cap** = price × circulating supply, the coins that are currently tradeable.
• **FDV** = price × maximum or total supply, including coins that are locked, reserved for the team and investors, or not yet issued.

If a token trades at $2 with 100 million coins circulating and a 1 billion maximum supply, its market cap is $200 million and its FDV is $2 billion.

Why the gap matters

A large gap means most coins have not reached the market yet. As they unlock, through vesting schedules, emissions or treasury releases, supply grows. If demand does not grow at the same pace, each coin represents a smaller share of the network's value.

Tokens launched with a small float and a high FDV are common. The low circulating supply can make early prices look strong while large unlocks are still scheduled.

What to check

• The unlock schedule: when, and to whom, new supply is released.
• Who holds the locked supply: team, investors, community or treasury.
• Whether the maximum supply is fixed, or whether new tokens can be minted.

Limits of both numbers

Neither figure is the money it would take to buy every coin. Thin order books mean selling even a small share could move the price a lot. Treat both as rough size indicators, not valuations.

Key takeaways

• Market cap reflects today's float; FDV reflects the eventual supply.
• A wide gap signals future dilution to plan around.
• Read the token's vesting schedule before relying on either number.