📌The difference between Market Cap and FDV in cryptocurrencies $BTC $BTC $BTC
✔️When evaluating any cryptocurrency project, it is important to understand the difference between Market Cap and FDV, as this difference may reveal hidden risks to you.
🛡What is MarketCap (current market value)
It is the total value of the cryptocurrency based on the number of circulating coins only.
Formula:
> Coin price × Number of available coins for trading (Circulating Supply)
It only reflects the current market situation.
Does not take into account coins that have not yet been issued.
▶️What is FDV (Fully Diluted Valuation)?
It is the expected market value if all the project's coins are released for trading.
Formula:
> Coin price × Total maximum supply (Total Max Supply)
Reflects the full potential of the coin in terms of valuation, but does not reflect the actual current situation.
⚠️ Why is the difference between them important and dangerous?
If there is a large difference between Market Cap and FDV, it means that there is a huge amount of coins that have not yet entered the market. And when this amount is released:
Increases the supply.
Selling pressure increases.
The price of the coin often drops as a result of oversupply.
📊 As an investor… why should you care?
Because you might buy a coin at a price that seems attractive, but in reality:
Its true value (FDV) is much higher.
When locked coins enter the market, a sudden drop in price occurs.
🖥Tip:
Projects where the difference between Market Cap and FDV is small are often considered safer and more stable in terms of price.
#FDV #marketcap #BinanceAlphaAlert #TrumpMediaBitcoinTreasury #WhaleJamesWynnWatch