The two definitions
Market cap = current price × circulating supply — the tokens actually in the market today. FDV = current price × total (or maximum) supply — the value if every token that will ever exist were already trading. When a large share of supply is still locked or unminted, FDV can dwarf market cap.
Why the gap is a warning sign
A token with a $50M market cap but a $2B FDV has 40× more supply waiting to enter circulation. As those tokens unlock — team, investors, emissions — they add sell pressure that the current price may not survive. A wide market-cap-to-FDV gap is one of the clearest structural risks in a token.
- Market cap ≈ FDV → most supply is already liquid; fewer unlock shocks ahead.
- FDV ≫ market cap → heavy future dilution; check the unlock schedule.
- Neither number tells you whether a price is tradeable — that takes liquidity.
Why liquidity beats both
Market cap and FDV both multiply price by a supply number, so a thin, manipulable price inflates them equally. On-chain liquidity is harder to fake: it is real value locked in pools. That is why CoinVerum leads with liquidity — read reading on-chain liquidity for how to judge whether a valuation is real.
Frequently asked questions
Which matters more, market cap or FDV?
Both. Market cap reflects today’s tradeable value; FDV warns you about future dilution. A healthy project has a manageable gap between them and a transparent unlock schedule.
Why is FDV sometimes misleading?
FDV assumes all supply is valued at today’s price, which rarely holds — large unlocks usually push the price down. It is a ceiling scenario, not a prediction.
How does CoinVerum calculate market cap?
CoinVerum multiplies its on-chain-derived price by circulating supply, so the figure inherits the verifiability of an on-chain price rather than a blended or CEX-led feed.