Fully Diluted Evaluation (FDV): Market Cap Ratio
To find the Fully Diluted Evaluation (FDV), you will need the following:
- A1 = Total Supply
- A2 = Token Value
- A3 = FDV = Total Supply * Token Value
- A4 = Market Cap
The FDV:Market Cap Ratio can be defined as: FDV over Market Cap
Investors have become cautious about projects with low circulation and high FDV, preferring tokens with a 1:1 market cap/FDV ratio.
Volume : Market Cap Ratio
In order to determine the Volume:Market Cap Ratio you will need the following:
- A1 = 24 Hours Volume Market Cap
- A2 = Market Cap
You can use the following formula on XLS to show the ratio to 1:
=TEXT(A1/A2, “0”)&”:1″
A good investment is when the volume is double the market cap (i.e 2:1). A bad investment is when the volume is very high (+100:1).
