Circulating supply, market cap and FDV explained

Three supply figures, three questions

• Circulating supply estimates the tokens available in public circulation. It is not simply every token that has been created, and it does not mean every included token is offered for sale.
• Total supply generally counts created tokens minus those permanently burned. Tokens that exist but remain locked can be included here while excluded from circulating supply.
• Maximum supply describes the potential supply limit, when one exists and can be determined. An unavailable maximum is not a maximum of zero.

CoinMarketCap distinguishes verified supply from self-reported figures and applies its own public-float criteria. CoinGecko describes using block explorers and project-supplied information, including locked addresses. Providers can therefore disagree without either field being a simple transcription error. Compare the definitions and timestamps before treating two figures as interchangeable.

Work through the arithmetic

Consider a fictional token priced at $2, with 10 million tokens circulating and a maximum of 100 million. Its circulating market cap is $2 × 10 million = $20 million. Using maximum supply, its fully diluted valuation (FDV) is $2 × 100 million = $200 million. These are illustrative numbers, not an asset recommendation.

The tenfold difference describes the supply used in the calculation. It does not predict a tenfold price fall, reveal an unlock date, or establish how much money holders could withdraw. FDV holds the current price constant while changing the token count. Actual future prices and circulating supply can change together.

Now suppose circulation becomes 20 million while the quoted price remains $2. Calculated market cap becomes $40 million. That arithmetic alone does not show that $20 million of new investment arrived. Market cap is a valuation calculation, not a running total of cash paid into the market.

What a ranking cannot tell you

Two assets can have the same market cap and very different trading conditions. In a second fictional example, both have a $20 million cap, but one has many liquid markets while the other has a thin pool. The supply formula does not tell you what price a large sale would receive. Review the actual venue, spread and available liquidity separately.

Similarly, a ratio between circulation and maximum supply is not an unlock calendar. To understand a specific token, locate its issuance rules, vesting disclosures and relevant contracts or explorer records. Distinguish an estimated future schedule from tokens already circulating, and check when the project last updated that information.

A repeatable check in DexTape

• Open the exact asset in Terminal. Confirm its name and identity before relying on a shared ticker.
• Open File and compare circulating supply, maximum supply, market cap and FDV where available. Keep the displayed provider and update time with your notes.
• Treat a missing field as unknown. Do not substitute total supply for maximum supply without saying which calculation you are making.
• Check the project’s primary supply documentation for emissions, unlocks and burns. Record any difference from the market provider instead of silently choosing the more attractive number.
• When comparing assets, use the same definition and a similar observation time. Review liquidity separately from valuation.

Your useful takeaway is a short explanation of what the displayed valuation includes and what remains uncertain. That is more informative than deciding whether a token looks inexpensive from its unit price alone.