Cryptocurrency

How to read MC and FDV before a new token

By Walid Mograbi · 2026-05-28 · 2 min read

A quick framework to separate current token valuation from theoretical full-supply valuation before assessing any new token launch.

How to read MC and FDV before a new token

Core idea

• The lesson is to separate current value from theoretical value before you judge a token project.
• MC and FDV are both valuation views, but they answer different questions:
  • MC: what the market is pricing now.
  • FDV: what the token could be priced at if the assumed max supply were fully in circulation.

MC (Market Cap) in simple terms

• MC is calculated from the currently circulating supply.
• Formula: MC = Circulating Supply × Price.
• It is based on the amount that is actually available for public trading today.

FDV (Fully Diluted Value)

• FDV uses a presumed maximum supply, not only what is currently circulating.
• Formula: FDV = Assumed Max Supply × Price.
• For this reason FDV is often equal to or greater than MC when part of the supply is still locked or not yet available.

What a wide gap means

• If MC and FDV are far apart, that gap can signal a potential increase in circulating supply in the future.
• This does not automatically mean the project is good or bad; it means the valuation model can change as supply unlocks.

Quick checklist before evaluating a new token

1. Confirm MC and FDV values from the token page.
2. Understand whether MC is based on truly circulating supply.
3. Check whether FDV is based on a clearly stated maximum supply assumption.
4. If the gap is wide, inspect vesting schedules next.
5. Treat FDV as a theoretical measure, not immediate market value.

Risk-first rule

• The gap is not a buy/sell signal.
• Use MC vs FDV as a framework for risk reading, and avoid using FDV as if it were the current market value.