FDV ~ (Terms)

In the world of cryptocurrency, FDV stands for Fully Diluted Valuation. It’s a metric used to estimate the total market capitalization of a cryptocurrency project if all of its tokens were in circulation. This helps investors gauge a project’s potential future value by taking into account the maximum number of tokens that could ever exist.

Here’s a breakdown of FDV:

  • What it represents: The maximum market value a cryptocurrency could reach if all its tokens were released.
  • How it’s calculated: Multiply the current token price by the total token supply.
  • Why it’s important: It helps investors assess the potential for future price appreciation and identify projects with high inflation that could lead to sell-side pressure on the token price.

It’s crucial to remember that FDV is just one factor to consider when evaluating a cryptocurrency project. Other important aspects include the project’s utility, team, adoption rate, and overall market conditions.

Author: OXZO

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