Blog / Tokenomics
February 22, 2026 · 6 min read

FDV vs market cap, and why it matters

The one metric most retail investors ignore, and probably should not. Fully diluted valuation, explained.

Fully diluted valuation answers one question: what would this project be worth at today's price if every token already existed?

Why it matters

Tokens that are locked today will be released later. If the network cannot attract enough new buyers to absorb them, the price tends to fall as supply arrives.

Quick rules

  • Compare FDV between similar projects, not market cap alone.
  • Read the vesting schedule for the next 12 months.
  • Be careful when the circulating share is below a third of total supply.
  • Look at revenue and usage: a project that earns fees can grow into its FDV.

See our longer guide on market cap vs FDV for the full checklist. Not financial advice.

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