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  2. /Glossary
  3. /FDV to Market Cap Ratio
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FDV to Market Cap Ratio

The ratio between a token's fully diluted valuation and its current market cap.

Definition

The ratio between a token's fully diluted valuation and its current market cap. A high ratio (like 10:1) means most tokens haven't been released yet and significant future dilution is coming. Low-float, high-FDV tokens became controversial in 2024 as they often dropped steadily as new tokens unlocked.

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Related Terms

Fully Diluted Valuation (FDV)

A project's theoretical market cap if all tokens were in circulation.

Market Cap (Market Capitalization)

The total value of all coins or shares in circulation, calculated as price times supply.

Token Unlock

When locked tokens from team allocations, investor rounds, or ecosystem funds become available for trading.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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