"Valuation" TAG

Examining the Relationship Between Ethereum Usage and the Value of Ether
  • research
Despite stablecoins and decentralized finance (DeFi) continuing to drive demand for gas consumption on Ethereum, and the smart contract network seeing higher usage than ever before, the price of Ether has remained largely range-bound in recent months both versus USD and BTC, raising important questions concerning the relationship between the network and its native asset...
The Security and User Experience Implications of EIP-1559
  • research
Many within the Ethereum community have long been concerned about poor user experience (UX) associated with first-price auctions and a parasitic relationship between some tokens, dApps, and services and the Ethereum base layer. Currently, users engage in first-price auctions to broadcast transactions on-chain, making it challenging for users and wallets to determine the optimal gas price, and...
CoinMetrics on Cryptoasset Valuation
  • research
In their weekly newsletter, blockchain analytics provider, CoinMetrics examined two increasingly popular narratives about Bitcoin valuation and its place within investment portfolios in the context of financial markets data. Bitcoin is increasingly regarded by many of its proponents as both an uncorrelated financial asset and a store of value. Therefore, Coin Metrics compared the correlation between Bitcoin...
Token Function: The Value-Transfer Family and ‘Payment Tokens’
  • research
  Key Takeaways: Value transfers is extremely common among SCI Signals projects (and the industry more generally), yet these can be subdivided into a broad range of functions including cryptocurrency, payment tokens, and discount payments. The payment token has been a predominant token design, and most conversations about utility token value proposition and valuation methodologies...
Cryptofinancial Valuation Series Part Two: The Quantity Theory of Money
  • research
Overview The Quantity Theory of Money (QTM) has become the de facto payment token valuation tool in the crypto industry—given a lack of well-established alternatives—despite interpretations of the theory varying greatly within traditional economics and a number of challenges when employing the model to value a cryptoeconomy. It is conceivable that the QTM’s ease of...
Cryptofinancial Valuation Series Part One: On the Road to Cryptofinancial Valuation
  • research
Overview In a world saturated with sophisticated financial analysis, it is hard to imagine a time when the essential task of determining a project or company’s monetary value faced what must have seemed insurmountable hurdles. While knowledge of compound interest can be traced back to at least as far as the Old Babylonian period (c....