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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.
12lessons
90 minreading in all
Working knowledgewhere it starts
01
Lessons in this track
01
Why valuing a digital asset is harder than valuing a companyA 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 · Working knowledge
02
Market cap to annualized fees, worked through step by stepThe 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 · Working knowledge
03
Market cap to protocol revenue, and what revenue means hereNarrowing 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 · Advanced
04
The fully diluted ratios, and when they are the more honest onesFully 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 · Advanced
05
Market cap to value locked, and what TVL actually countsTotal 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 · Working knowledge
06
Market cap per active address, and why an address is not a personDividing market cap by active addresses gives a value-per-user figure whose denominator counts neither values nor users reliably.
6 min · Working knowledge
07
NVT and settled-value ratios, and how they are known to failNetwork value to transactions was built as an earnings-multiple analogue for chains; its denominator measures ledger movement rather than economic use.
8 min · Advanced
08
Fee yield, revenue yield and holder-revenue yield are not incomeThese 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 · Advanced
09
The limits of every valuation ratio on this siteOne 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 · Advanced
10
How to build a comparison set that is not nonsenseA peer group only means something when fee mechanism, accounting boundary, supply definition and measurement window are held constant across it.
8 min · Advanced
11
What to look at when every valuation ratio is meaninglessSome assets generate no fee stream at all, which makes every ratio in this track undefined rather than merely unreliable.
7 min · Working knowledge
12
A measurement and a judgement are different thingsEverything 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 · Working knowledge
10 lessons
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Market structure
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Risk
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Start here
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Supply and issuance
6 lessons