Track12 lessons
Valuation
A share is an enforceable claim on audited cash flows; a token usually is not, and that single difference reshapes every ratio built on it.
01 — Why valuing a digital asset is harder than valuing a company
A share is an enforceable claim on audited cash flows; a token usually is not, and that single difference reshapes every ratio built on it.
7 min
02 — Market cap to annualized fees, worked through step by step
The arithmetic takes one line; the choices hidden inside it are where two careful analysts end up with different numbers for the same network.
8 min
03 — Market cap to protocol revenue, and what revenue means here
Narrowing the denominator from all fees to protocol revenue sharpens the ratio and imports a classification call no standard-setter has ever ruled on.
8 min
04 — The fully diluted ratios, and when they are the more honest ones
Fully diluted valuation counts tokens that do not exist yet, which makes it either the most misleading number on a page or the only realistic one.
8 min
05 — Market cap to value locked, and what TVL actually counts
Total value locked measures deposits a protocol holds but does not own, priced in assets that move, which shapes how the ratio can be read.
7 min
06 — Market cap per active address, and why an address is not a person
Dividing market cap by active addresses gives a value-per-user figure whose denominator counts neither values nor users reliably.
6 min
07 — NVT and settled-value ratios, and how they are known to fail
Network value to transactions was built as an earnings-multiple analogue for chains; its denominator measures ledger movement rather than economic use.
8 min
08 — Fee yield, revenue yield and holder-revenue yield are not income
These three figures invert the valuation ratios into percentages that look like yields, and none of them describes cash arriving in anyone's account.
8 min
09 — The limits of every valuation ratio on this site
One page collecting the failure modes shared by all of them, so no ratio here gets read as a statement about what an asset is worth.
8 min
10 — How to build a comparison set that is not nonsense
A peer group only means something when fee mechanism, accounting boundary, supply definition and measurement window are held constant across it.
8 min
11 — What to look at when every valuation ratio is meaningless
Some assets generate no fee stream at all, which makes every ratio in this track undefined rather than merely unreliable.
7 min
12 — A measurement and a judgement are different things
Everything in this track produces measurements; a view about worth is a judgement, and keeping the two apart is what the whole method depends on.
7 min