Use this guide as an educational checklist. Confirm current platform terms and local eligibility before opening, funding, or connecting any account.

Market cap and FDV answer different questions

Market cap uses circulating supply. Fully diluted valuation uses a broader supply base such as total or maximum supply.

Neither number is automatically better. Market cap can understate future dilution. FDV can overstate practical supply if unlocks are slow, conditional, or uncertain.

Unlocks affect ownership share

If circulating supply rises while market cap stays constant, the implied price per token falls. That constant-market-cap assumption is only a teaching device.

The real market can react in many ways depending on demand, liquidity, incentives, and timing.

Look for missing supply data

If total supply, maximum supply, or unlock data is missing, an honest analysis should say so. Treating unknowns as harmless can create false confidence.

Supply analysis is strongest when the numbers can be traced to current project documentation or reliable provider data.

Use FDV as a question generator

A high FDV gap should prompt questions about unlock schedules, holders, vesting, market depth, and whether expected future supply is already understood by the market.

It should not automatically produce a buy or sell conclusion.

Decision rule

Use this guide as a checklist, not as financial advice. Confirm current platform terms, local eligibility, and risk limits before opening or funding any account.

Sources

  • PartnerCrypto original supply-analysis guide.