Market Cap Vs Fully Diluted Value

1. Market Cap (MC): Market cap shows the current value of all actively circulating tokens or coins. It reflects how much the crypto project is currently worth in the market.

Formula:

Market Cap = Current Price × Circulating Supply

Example:

If a token is priced at $2 and has 10 million tokens in circulation:

$2 × 10,000,000 = $20 million market cap

2. Fully Diluted Value (FDV): FDV estimates the future market cap if all tokens were released or unlocked. It includes tokens not yet in circulation (e.g., team tokens, investor tokens, staking rewards, etc.).

Formula:

FDV = Current Price × Maximum Supply

Example:

If that same token has a maximum supply of 100 million tokens:

$2 × 100,000,000 = $200 million FDV

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