Market cap FDV
✔️ When evaluating any cryptocurrency project, it is important to understand the difference between Market Cap and FDV, as this difference may reveal hidden risks
🛡 What is Market
Cap (Current Market Value)
It is the total value of the cryptocurrency based on the number of coins currently in circulation only.
Formula:
> Coin price × Circulating Supply
It only reflects the current market situation.
It does not take into account coins that have not yet been released.
▶️ 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 Max Supply
It represents the full potential of the coin in terms of valuation, but it does not reflect the current actual situation.
⚠️ Why is the difference between them important and dangerous?
If there is a significant difference between Market Cap and FDV, it means that there is a massive amount of coins that have not entered the market yet. And when this quantity is released:
Supply increases.
Selling pressure increases.
The coin's price 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 real value (FDV) is much higher.
And 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.