A coin priced at ₩1 may look as though it has more room to rise than one priced at ₩100,000. But the price of one unit cannot tell you an asset's market size or fair value. Supply matters too.
Separate these three numbers
- Unit price: The market price of one coin.
- Market capitalization: Usually the unit price multiplied by circulating supply.
- FDV (fully diluted valuation): Current price multiplied by a broader supply measure. Check whether a service uses maximum supply, total supply or another definition.
On CoinMadang, read the displayed explanation together with the supply basis. Assuming that identically named metrics are calculated the same way across services can produce misleading comparisons.
Compare the numbers
Suppose asset A costs ₩1 and has 1 trillion units circulating: its market cap is ₩1 trillion. Asset B costs ₩100,000 and has 1 million units circulating: its market cap is ₩100 billion. A has a much lower unit price but a larger overall market size.
Market cap is not the total cash invested in an asset. It applies a price formed through some trades to the whole circulating supply. Nor does it mean every holder could sell at that same price simultaneously.
What if FDV is much larger than market cap?
There may be a large quantity not yet circulating relative to the amount already in circulation. However, you need separate schedules and documents to learn when it may enter circulation, who receives it and under what conditions. A large gap alone cannot predict when or how far a price may fall.
Unclear circulating-supply figures also reduce confidence in the calculation. Compare supply sources, update times, unlock schedules and actual liquidity. When someone claims a coin could reach a certain price, calculating the market cap implied by that price helps put its scale in perspective.
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