There is important work being done to create a general framework for valuing cryptoassets. We might consider a few key concepts, total addressable market (TAM),

There is important work being done to create a general framework for valuing cryptoassets. We might consider a few key concepts, total addressable market (TAM), percent penetration of that market, velocity, and number of coins outstanding. It's essential to understand the token velocity, and the degree by which a network is effectively capturing some of the value it delivers to its users/token holders. Chris Burniske, a crypto fund manager writes "these aren’t companies; they don’t have cash flows. Hence, using a discounted cash flow (DCF) analysis is not suitable. Instead, valuing cryptoassets requires setting up models structurally similar to what a DCF would look like, with a projection for each year, but instead of revenues, margins and profits, the equation of exchange is used to derive each year’s current utility value (CUV). Then, since markets price assets based on future expectations, one must discount a future utility value back to the present to derive a rational market price for any given year". “Cryptoasset Valuations” @cburniske https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7 https://medium.com/@cburniske/cryptoasset-valuations-ac83479...