All lessons
Supply, market cap and FDV
A token priced at one cent is not automatically cheap. The number of tokens changes the size of the picture.
Compare unit price with the number of units it values.
Circulating supply estimates units available in public circulation. Total supply and maximum supply answer different questions about existing and potentially issuable units. Definitions and estimates vary by data provider, so record the methodology and time of observation.
Market capitalization is price multiplied by circulating supply. Fully diluted valuation commonly multiplies price by a broader potential supply measure. Neither equals cash deposited into the asset, nor the amount every holder could receive by selling simultaneously at the displayed price.
A small unit price does not imply a bargain. Compare issuance rules, ownership, liquidity and the rights a token provides. FDV is a scenario using today's price, not a prediction that all future units will trade at that price or enter circulation immediately.
Let’s use numbers · hypothetical example
Hypothetical: price 2, circulating supply 10 million and maximum supply 100 million gives market cap 20 million and max-supply FDV 200 million. If price doubles while supply stays unchanged, both calculated values double; no equal cash inflow is required.
Keep in mind
A calculated valuation does not measure executable liquidity or fundamental worth.
Your turn
Calculate the same metrics at price 0.50 and explain the supply assumptions.
A quick check before we move on
Is market cap the cash invested?
- No; it is a price-times-supply calculation
- Yes
- Only for low-priced tokens
Check answer
No; it is a price-times-supply calculation Marginal transaction prices value all counted units mathematically.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.