What is Fully Diluted?
A fully diluted in the crypto markets express the total number of coins or maximum supply of specific crypto that will be in circulation. With some cryptos, the current number of coins in circulation may differ from the total quantity that will be supplied. For instance, the total supply of Bitcoin that will be minted is set at 21 million BTC. However, the current number of BTC in circulation is lower because it is expected that the fully diluted supply will be reached in the year 2140.
Accordingly, fully diluted market capitalization is calculated as the sum of the current crypto price multiplied by the fully diluted supply regardless of the current number of coins in circulation.