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Executive summary: Fully Diluted Market Cap — How Emissions Kill Tokens in a Bear Market

FDV is a metric that gets ignored until the bear market hits. Investors wake up to fantastical valuations and panic sell their coins. In this article, I look at the significance of the fully diluted market cap.
Executive summary: Fully Diluted Market Cap — How Emissions Kill Tokens in a Bear Market

Executive summary:

  • The fully diluted value (or market cap) of a token is the value of all the tokens that will ever be in circulation.
  • The three reasons to look at a token's FDV are assessing its fair value, understanding token emission and potential selling pressure, and determining team and market sentiment towards the project.
  • When you use FDV for trading, look at a token's initial valuation and how it compares to competitors.
  • It's also important to understand where we are in the market cycle and how FUD and narratives influence the token price.

Full article:

Fully Diluted Market Cap — How Emissions Kill Tokens in a Bear Market | CoinMarketCap
Fully diluted market cap is the valuation if all tokens — the maximum supply — are in circulation. But why does this matter, especially in the current bear market?