Valuation Methodologies

Below you will find a curated selection of articles and explainers which should help you understand different ways to value these new assets

This form of analysis allows us to monitor the savings behaviour of network participants by separating user wallets by age distributions.

A long-term price indicator that compares the market value of any cryptoasset to the value at which each individual token was last moved at. This ratio has done incredibly well in picking market bottoms.

Metcalfe's law has helped many analysts gain an understanding of how network effects affect the earnings capabilities of network companies like Facebook and Alibaba. Here it is as applied to cryptoassets.

The “crypto P/E ratio”. It shows the relationship of a networks value to the transaction volume facilitated by the network. This ratio can be used to compare similar assets and assert whether one is over or undervalued relative to its peers.

Grayscale proposes different ways to think about Bitcoins Value