When a token looks "cheap," the first question should be: cheap based on what supply number?
Crypto projects often have two valuations at the same time. One is based on "what is tradable today", and the other is based on "what could exist later". That's why understanding circulating supply and fully diluted market cap side by side is a core part of tokenomics fundamentals.
Circulating Supply Explained
Circulating supply is the number of tokens currently available for public trading. These are tokens that can realistically move across wallets and exchanges today.
If a token has a large total supply but only a small amount circulating, the chart may look smaller than the project's long-term supply picture.
This is why many investors search for the circulating supply crypto meaning before judging valuation.
Understanding Crypto Market Cap
Most people think "market cap" is one number. In crypto, it depends on which supply you are using.
Market cap (circulating market cap) = Token price × Circulating supply
This is the standard market cap you see on most trackers, because it reflects the current float.
This section covers understanding crypto market cap the right way: market cap is not only about price, but it's also about supply that is actually in the market.
Fully Diluted Market Cap Meaning
Fully Diluted Market Cap estimates what the valuation would be if the full supply were priced at today's token price.
Fully Diluted Market Cap = Token price × Total supply (or max supply, depending on the project)
When people say fully diluted market cap explained, this is the simplest explanation: FDV applies today's price to the entire supply, even if most of it is locked or scheduled for later release.
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