Market cap and FDV: why token price alone tells you very little

The price of one token does not tell you the size of a project. Market capitalization is approximately price multiplied by circulating supply, so a one-dollar token can represent a much larger network than a thousand-dollar token.

FDV, or fully diluted valuation, uses the maximum or total token supply. A large gap between market cap and FDV means a meaningful share of supply may still enter circulation.

When comparing projects, look at market cap, trading volume, circulating-supply ratio and unlock schedules together. No single metric provides a complete picture.

A high valuation does not guarantee liquidity. On smaller venues, the execution price of a large order can differ materially from the latest quoted price.