Why Market Cap May Mislead You About Cryptocurrency Value

In the world of cryptocurrencies, market capitalization (market cap) is often used to gauge the value of a project. However, this metric can be misleading and doesn't always give an accurate picture of a token's valuation.

That's where Fully Diluted Valuation (FDV) comes in, one of the most important metrics in tokenomics. FDV provides a more comprehensive view of a project's value by taking into account not just the circulating supply, but also the maximum supply that could potentially enter the market in the future.

To understand this difference, let's consider an example. Suppose we have two tokens: one with a price of $0.10 and another with a price of $1,000. Which one is more expensive? The answer might not be what you think.