Market Cap and FDV: Core Definitions
Understanding fdv vs market cap begins with market capitalization, or market cap, which measures a cryptocurrency’s current value based solely on tokens already circulating. The verified formula is Market Cap = Current Price × Circulating Supply.
Fully diluted valuation, or FDV, estimates the theoretical value if every token scheduled to exist were already in circulation. Its formula is FDV = Current Price × Total Supply, or Maximum Supply after accounting for burns where applicable.
The two metrics become identical only when circulating supply equals total or maximum supply. In all other cases the gap between market cap and FDV directly represents the quantity of locked, vested, or unissued tokens that may later enter circulation through unlocks or emissions. CoinGecko surfaces this relationship as a Market Cap / FDV ratio on token pages; a ratio closer to 1 shows that most supply is already circulating, while lower ratios indicate substantial future dilution potential embedded in the current price.
How the Gap Quantifies Future Dilution
CoinGecko’s Market Cap/FDV ratio directly measures the share of total supply already in circulation. A ratio near 1 shows most tokens are circulating; ratios well below 1 flag large locked, vested or unissued portions still to enter the market.
When circulating supply sits far below total supply, the gap quantifies the dilution that will occur at each unlock or emission event. For example, the CAP token showed a 15.6 percent circulating ratio in September 2026 data, implying roughly 84 percent of its 10 billion supply remained outside current market cap calculations. XRP’s ratio stood near 62.9 percent and SUI’s near 41 percent on the same date, each indicating substantial future supply pressure once vesting schedules release more tokens.
Locked and vested tokens do not create immediate selling pressure, yet every release enlarges the pool of tokens available for sale. Sustained prices then depend on demand growing fast enough to absorb the added supply. Projects with extended vesting or large unissued allocations therefore embed predictable dilution risk that the Market Cap/FDV ratio helps surface before unlocks hit.
Real Token Examples from September 2026
CAP illustrates a pronounced gap. At approximately September 2026, CoinMarketCap recorded a price of $0.05535, a market cap of $86.34 million, and an FDV of $551.03 million. With 1.56 billion tokens circulating out of a 10 billion total supply, the circulating portion stood at 15.6 percent. The formula Market Cap = Price × Circulating Supply yields the observed $86.34 million figure, while FDV = Price × Total Supply produces $551.03 million, confirming a Market Cap / FDV ratio of roughly 0.157.
XRP data as of 17 September 2026 shows a narrower spread. Multiple sources list the price near $1.30, market cap between $81.6 billion and $82.04 billion, and FDV between $129.7 billion and $130.47 billion. Circulating supply reached 62.88 billion of the 100 billion maximum, or 62.9 percent. The FDV / market-cap ratio averaged about 1.59×, indicating that nearly two-thirds of eventual supply already trades.
SUI presents an intermediate case on the same date. Price hovered between $0.72 and $0.73, market cap between $2.94 billion and $3.00 billion, and FDV between $7.16 billion and $7.32 billion against a 10 billion total supply. Circulating supply of 4.10 billion tokens represented 41 percent, producing an FDV / market-cap ratio near 2.44×. These snapshots demonstrate how the same formulas reveal differing dilution risk across tokens at a single point in time.
Side-by-Side Token Comparison
| Token | Price (USD) | Market Cap | FDV | Circulating % | FDV/MC Ratio |
|---|---|---|---|---|---|
| CAP | $0.05535 | $86.34 million | $551.03 million | 15.6% | 6.38x |
| XRP | $1.30 | $81.6–82.04 billion | $129.7–130.47 billion | 62.9% | 1.59x |
| SUI | $0.72–0.73 | $2.94–3.00 billion | $7.16–7.32 billion | 41% | 2.44x |
CAP exhibits the widest gap between metrics, with only 15.6 percent of its 10 billion supply circulating. This leaves substantial room for dilution once the remaining tokens unlock. XRP, by contrast, already has 62.9 percent of its 100 billion max supply in circulation, limiting additional pressure to roughly 1.59 times its current market cap. SUI sits between the two extremes at 41 percent circulating and a 2.44 times FDV/MC ratio, indicating moderate future supply growth relative to its present valuation. Traders assessing unlock risk therefore face the steepest exposure with low-float tokens like CAP, while XRP offers the most contained dilution outlook among the three examples.
Evaluating Projects Before the Unlock Trap Hits
Traders assess unlock risk by pairing the market cap to FDV ratio with a project’s vesting schedule. A low ratio shows that most supply is still locked, so any release adds immediate sellable tokens that existing demand must absorb to avoid price drops. Linear vesting spreads this pressure across months or years, while cliff schedules concentrate it at single points and raise the chance of sudden supply shocks.
Review the ratio first to quantify the scale of future dilution, then examine the vesting timeline to understand its speed and concentration. Projects that combine modest ratios with long, gradual schedules give markets more time to build usage and attract new buyers. Sustained price stability requires demand growth—through higher transaction volume, new integrations, or expanded token utility—to match or exceed the added circulating supply at each unlock.
Without corresponding demand increases, even orderly vesting leads to gradual or sharp declines. Focus on whether the protocol shows measurable adoption metrics that can scale with supply rather than relying on narrative alone. This combined view reveals whether current valuation already prices in future dilution or leaves room for organic support to develop before unlocks arrive.
FAQ
How is market cap calculated compared with FDV?
Market cap multiplies current price by circulating supply only. FDV multiplies the same price by total or maximum supply. For the CAP token, CoinMarketCap data showed a market cap of $86.34 million against an FDV of $551.03 million when circulating supply stood at 1.56 billion out of 10 billion.
What does a Market Cap / FDV ratio tell investors?
CoinGecko displays the ratio to show how much of the theoretical valuation is already circulating. Ratios closer to 1 mean most supply is active; lower ratios flag future dilution from locked or unissued tokens.
How do unlocks change the gap between the two metrics?
Unlocks move tokens from locked to circulating supply. This can raise market cap if price stays steady while FDV remains fixed, narrowing the gap. Demand must grow to absorb the added supply or prices may face downward pressure.
Where do platforms source FDV numbers?
CoinMarketCap and CoinGecko pull total supply figures directly from project tokenomics. On September 17, 2026, they listed XRP at roughly $81.6–82.04 billion market cap and $129.7–130.47 billion FDV, reflecting 62.88 billion tokens circulating out of 100 billion.
Why check both metrics before buying after a low-float launch?
Low circulating supply can make market cap look modest while FDV signals large future supply. SUI illustrated this on the same date with a 2.44x FDV/MC ratio and only 41 percent of its 10 billion supply circulating.