Market Cap to Fdv Ratio Calculator
Assess token unlock risk by comparing circulating market cap to fully diluted valuation. Enter values for instant results with step-by-step formulas.
Formula
MC/FDV Ratio = (Price x Circulating Supply) / (Price x Total Supply)
The ratio simplifies to Circulating Supply divided by Total Supply. Market cap uses only tokens currently tradeable, while FDV assumes all tokens are in circulation at the current price. Monthly dilution is calculated as the monthly unlock percentage of total supply relative to current circulating supply.
Worked Examples
Example 1: High Dilution Risk Token
Problem: Token XYZ trades at $3.00 with 100M circulating supply out of 1B total. Monthly unlock is 3% of total supply. Evaluate the dilution risk.
Solution: Market Cap = $3.00 x 100M = $300M\nFDV = $3.00 x 1B = $3B\nMC/FDV Ratio = $300M / $3B = 0.10 (only 10% circulating)\nMonthly unlock = 3% x 1B = 30M tokens = $90M/month\nAnnual dilution = (30M x 12) / 100M = 360% of current supply\nImplied price at full dilution = $300M / 1B = $0.30
Result: MC/FDV: 0.10 | Risk: HIGH | 360% annual dilution | 90% potential price decline
Example 2: Mature Token Assessment
Problem: Token ABC at $15.00, 800M circulating out of 1B total. Monthly unlock is 1% of total supply.
Solution: Market Cap = $15 x 800M = $12B\nFDV = $15 x 1B = $15B\nMC/FDV Ratio = $12B / $15B = 0.80\nMonthly unlock = 1% x 1B = 10M tokens = $150M/month\nAnnual dilution = (10M x 12) / 800M = 15%\nImplied price at full dilution = $12B / 1B = $12.00
Result: MC/FDV: 0.80 | Risk: LOW | 15% annual dilution | 20% potential price impact
Frequently Asked Questions
What is the difference between market cap and fully diluted valuation (FDV)?
Market capitalization is calculated by multiplying the current token price by the circulating supply, which represents the tokens currently available for trading. Fully diluted valuation multiplies the current price by the total or maximum supply, including tokens that are locked, vesting, or not yet minted. The difference between these two figures represents the value of tokens that will eventually enter circulation. A large gap signals significant future dilution, meaning more tokens will be sold on the market over time, potentially creating downward price pressure. For example, if a token has a $500M market cap but $5B FDV, 90% of tokens are still locked and waiting to enter the market.
What does the MC/FDV ratio tell me about a token investment?
The MC/FDV ratio indicates what percentage of the total token supply is currently circulating. A ratio of 1.0 means all tokens are in circulation (no future dilution). A ratio of 0.10 means only 10% of tokens are circulating, with 90% yet to be unlocked. Generally, ratios below 0.25 indicate high dilution risk, as three-quarters or more of the supply will eventually hit the market. Ratios between 0.5 and 0.8 are moderate, while ratios above 0.8 suggest most dilution has already occurred. However, this metric should be combined with unlock schedules, team vesting terms, and market demand to form a complete investment thesis for any cryptocurrency project.
How accurate are the results from Market Cap to Fdv Ratio Calculator?
All calculations use established mathematical formulas and are performed with high-precision arithmetic. Results are accurate to the precision shown. For critical decisions in finance, medicine, or engineering, always verify results with a qualified professional.
How do I interpret the result?
Results are displayed with a label and unit to help you understand the output. Many calculators include a short explanation or classification below the result (for example, a BMI category or risk level). Refer to the worked examples section on this page for real-world context.
What formula does Market Cap to Fdv Ratio Calculator use?
The formula used is described in the Formula section on this page. It is based on widely accepted standards in the relevant field. If you need a specific reference or citation, the References section provides links to authoritative sources.
Does Market Cap to Fdv Ratio Calculator work offline?
Once the page is loaded, the calculation logic runs entirely in your browser. If you have already opened the page, most calculators will continue to work even if your internet connection is lost, since no server requests are needed for computation.