Market cap & FDV

Know the difference between market cap and FDV when using a DEX.

Market capitalization refers to the total market cap of tokens in circulation:

• Market Cap = Current Price x Circulating Supply

FDV (Fully Diluted Valuation) refers to the max supply of tokens:

• FDV = Current Price x Max Supply  

Find market cap and FDV on Coingecko, Coinmarketcap. & DexTools

DeFi tokens are often used as reward incentives with inflationary models, this will reflect in market cap to FDV. Make sure to check this before assuming a high price potential for a low market cap coin with high FDV. 

Check official user documentations for tokenomics which will tell you more about max token supply and the way new tokens will be minted, unvested or rewarded to users.

Market cap comparison tools allow you to view the value of any token with the market cap of another. If you are using market cap comparison tools, it is best practice to compare product competitors; compare DEX tokens with DEX tokens, memecoins with memecoins, take into consideration their time on the market, protocol TVL and tokenomics. Use common sense in comparisons, low cap tokens can not be compatibly compared to blue chips.

Market Cap Comparison Tools: 

MC.xyz, Market Cap Of, Coingecko Compare

Pictured above from MarketCapOf:

Using memecoins at todays prices: If MOG (MC $675M), went to the market cap of SHIB (MC $10B), MOG value would 14.96x 

Learn more: What is a cryptocurrency market cap?, Motley Fool

Learn More: What is FDV in Crypto?, Coingecko Learn