Market Cap to Fdv Ratio Calculator

Because price appears in both the numerator and the denominator, the market cap to FDV ratio algebraically reduces to circulating supply divided by total supply. It is therefore a pure float measure, independent of price: a reading of 0.10 means one token in ten is liquid and nine are still locked. Practitioners read it in bands - below 0.25 is a heavy overhang, 0.25 to 0.50 is elevated, 0.50 to 0.80 is moderate, and above 0.80 means most distribution has already happened. Inverting it gives the eventual supply multiple, so 0.10 implies a tenfold increase in tokens outstanding. The implied price at full dilution shown here holds market capitalisation constant and spreads it across total supply, which quantifies how far price must fall if new tokens arrive without any new demand. The ratio alone is not a verdict, which is why unlock velocity is modelled alongside it. A monthly release of 4 percent of total supply against a 50 percent float is a very different proposition from the same 4 percent against a 10 percent float, where annual dilution can exceed 400 percent of the existing circulating base. The decisive comparison is unlock value against liquidity: daily unlock value approaching or exceeding a meaningful fraction of daily trading volume means the market cannot absorb the supply without slippage. Two caveats apply. Total supply figures are unreliable for tokens with uncapped or governance-adjustable emission, and the model assumes every unlocked token is sold, which overstates impact when recipients are long-term aligned or when tokens unlock straight into staking or liquidity contracts. The composite risk score combining float, unlock rate, and remaining vesting duration is a heuristic ranking device, not a calibrated probability.

The metric exists because of a definitional fight over what counts as supply. In the years after the 2013 to 2014 altcoin wave, rankings were computed on total supply, which let projects that had premined most of their coins claim inflated valuations. CoinMarketCap's adoption of circulating supply - excluding tokens locked, reserved, or otherwise not publicly available - as the basis for market capitalisation resolved that, but created the opposite distortion: a project could show a modest market cap while sitting on an enormous locked allocation nobody was pricing. The 2017 ICO cycle exposed the consequence, as tokens sold at low prices to early rounds unlocked into retail order books over the following two years. Aggregators responded by publishing total and maximum supply alongside circulating supply and, eventually, fully diluted valuation. Dedicated unlock infrastructure followed: Token Unlocks launched in 2021 to publish forward calendars of cliff and linear releases, and Messari built comparable supply-schedule research, turning vesting terms from buried whitepaper footnotes into tracked market data. The ratio moved from analyst shorthand to mainstream concern during 2024, when a cohort of tokens listed with single-digit percentage floats and multi-billion-dollar fully diluted valuations; research published that year by Binance Research and echoed across the industry documented systematic underperformance in this group and made low float, high FDV a standard screening criterion rather than a niche observation.