What Is FDV? The Role of Fully Diluted Valuation in Crypto
Scroll through any token listing on Gate.io and you’ll see two market‑cap numbers: “Circulating” and FDV. Curious newcomers immediately ask, “FDV là gì?” or “what is FDV in crypto?” Fully Diluted Valuation (sometimes called Fully Diluted Market Cap) estimates how large a coin’s market cap would be if every single token defined in the tokenomics were already in circulation. Understanding FDV is essential for spotting inflated valuations, timing airdrop unlocks, and managing risk in early‑stage projects.
Why Circulating Market Cap Isn’t the Whole Story
Circulating market cap = price × tokens currently tradable.
That figure can look tiny when only 5–10 % of total supply is unlocked. A coin at $1 with 50 million circulating tokens shows a neat $50 million cap, but if its total supply is 1 billion, the FDV is $1 billion—a potential 20× difference.
High FDV relative to circulating cap often foreshadows sell‑pressure when vested tokens finally hit exchanges like Gate.io.
How to Calculate FDV
FDV = Current Token Price × Maximum Token Supply
Example
Token X trades at $2.40
Max supply = 500 million
FDV = 2.40 × 500 M = $1.2 billion
Gate.io displays this automatically beside each spot pair so users don’t need to crunch numbers.
The Role of FDV in Tokenomics Analysis
- Unlock Schedules – Projects publish linear or cliff unlocks; converting those future releases into FDV impact helps investors gauge dilution.
- VC Exit Windows – If venture funds hold 30 % of supply that unlocks next quarter, a lofty FDV warns of aggressive distribution.
- Price‑Target Reality Check – A meme coin shouting “to $10!” may imply a multi‑trillion FDV—unlikely without global adoption.
Comparing FDV Across Sectors
| Sector | Typical Circulating % at TGE | FDV Red‑Flag Threshold |
|---|---|---|
| Layer‑1 | 8–15 % | > $20 billion |
| DeFi | 12–25 % | > $5 billion |
| GameFi | 5–10 % | > $2 billion |
| Meme / Culture | 100 % (no locks) | N/A (all supply live) |
A Layer‑1 launching with 10 % float and $30 billion FDV needs consistent demand for years just to justify its initial price.
FDV vs. Realized Valuation: Case Studies
-ARB (Arbitrum) – Listed March 2023 at $1.20, 12.75 % circulating. FDV ≈ $12 B. Price stalled until the first unlock in March 2024, then dipped 30 % as new supply hit market makers on Gate.io.
- PYTH – Airdropped Nov 2023 with 15 % float, FDV ~$5 B. Aggressive ecosystem incentives kept incentives high, but token sold off 45 % when weekly emissions doubled Q2 2024.
Lesson: large FDV alone isn’t bearish—unless unlocks arrive faster than genuine demand growth.
How Traders Use FDV on Gate.io
- Pre‑Listing Research – Before participating in Gate.io Startup launches, compare FDV to comparable tokens; skip inflated deals.
- Unlock Calendar Hedging – Use Gate.io Futures to short tokens facing big unlocks if FDV already lofty.
- Long High‑Float Gems – Tokens like DOGE or KAS with near‑100 % circulating supply remove dilution risk; FDV ≈ circulating cap.
Practical Checklist (DYOR) When Using FDV
- Read the tokenomics litepaper—note cliffs and linear schedules.
- Convert upcoming unlocks into potential FDV at current price.
- Check Gate.io’s Funding‑Rate Dashboard; high positive funding on low‑float coins signals frothy leverage.
- Size positions so a 30 % unlock can’t liquidate your margin account.
- Re‑evaluate FDV every quarter—markets change, so does fair value.
Final Thoughts
Fully Diluted Valuation answers the hidden question: “What happens when the rest of the tokens hit the market?” By internalizing FDV là gì—and tracking it alongside circulating cap—you’ll avoid overpaying for hype and spot genuine value before the crowd. Gate.io’s transparent display of circulating supply, max supply, and FDV empowers traders to make data‑driven decisions in the fast‑moving world of cryptocurrency.
