How To Value Crypto: A Guide To The Basics
Portfolio Pulse from Stjepan Kalinic
The article discusses various methods for valuing cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and BNB Chain (BNB). It covers approaches like the total addressable market, stock-to-flow model, Metcalfe's law, cost of production, discounted cash flow, network effects, and tokenomics. It also touches on valuing decentralized applications (DeFi) using financial ratios similar to traditional finance.
December 02, 2023 | 4:32 pm
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NEUTRAL IMPACT
Cardano's valuation approaches, similar to those of other smart contract platforms, may affect its price as these methods are applied by investors.
Cardano is grouped with other smart contract platforms for valuation purposes. The short-term impact on its price is neutral, as the valuation methods are not new to the market.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
BNB Chain's valuation could be impacted by the same methods as Ethereum and Solana, potentially affecting its price as these models are considered by investors.
BNB Chain is mentioned in the context of smart contract platforms and their valuation methods. The short-term impact on its price is neutral, as the article reinforces existing valuation methods rather than introducing new information.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Bitcoin's valuation methods include the total addressable market, stock-to-flow model, Metcalfe's law, and cost of production, which could influence investor perception and its price.
The article discusses various valuation methods for Bitcoin, which could provide investors with new insights or reaffirm existing valuation models, potentially affecting short-term price movements. However, the impact is uncertain as these models are already known to market participants.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Ethereum's valuation can be assessed using discounted cash flow, network effects, and tokenomics, which may impact its price as investors apply these models.
The article provides insights into Ethereum's valuation methods, which could affect investor sentiment and the asset's price. The impact is neutral in the short term as these methods may already be factored into the current price by market participants.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Solana's valuation could be influenced by the same methods as Ethereum, potentially affecting its price as investors consider these factors.
Solana is mentioned alongside Ethereum in the context of valuation methods. The impact on its price is neutral short term, as the article does not provide new information but reinforces existing valuation frameworks.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70