The primary difference between market cap and fully diluted market cap lies in the method of determining the total value of a cryptocurrency or stock.
Market Cap (Market Capitalization):
This represents the total value of the currently circulating coins or shares in the market. Market capitalization is calculated by multiplying the number of circulating coins or shares by the current market price. Calculation method: Market Cap = Number of circulating coins/shares × Current price.
Fully Diluted Market Cap:
This refers to the total value of a cryptocurrency or stock when all possible coins or shares are in circulation. It includes not only the currently circulating coins but also the future maximum supply of all coins/shares. Calculation method: Fully Diluted Market Cap = Total maximum supply (future max supply) × Current price.
Example: If a #Cryptocurrency has 1 million coins currently in circulation and the price is $5, the market cap would be $5,000,000. However, if the maximum supply is 2 million coins, the fully diluted market cap would be $10,000,000.
Market Cap (Market Capitalization):
This represents the total value of the currently circulating coins or shares in the market. Market capitalization is calculated by multiplying the number of circulating coins or shares by the current market price. Calculation method: Market Cap = Number of circulating coins/shares × Current price.
Fully Diluted Market Cap:
This refers to the total value of a cryptocurrency or stock when all possible coins or shares are in circulation. It includes not only the currently circulating coins but also the future maximum supply of all coins/shares. Calculation method: Fully Diluted Market Cap = Total maximum supply (future max supply) × Current price.
Example: If a #Cryptocurrency has 1 million coins currently in circulation and the price is $5, the market cap would be $5,000,000. However, if the maximum supply is 2 million coins, the fully diluted market cap would be $10,000,000.
2 months ago
