This articles is from @Block49Capital which contains a lot of infor, If you like the post please give them a visit.
Measures the value of each $ locked in the protocol. Protocols that trade at higher multiples are not necessarily overvalued, as they often generate more revenue per $ of TVL
Similar to the previous metric except now we are looking at the fully diluted value (if all coins were in circulation).
$UNI $AAVE $MKR $COMP $SNX $SUSHI $YFI $CRV
This shows how much each $ locked generates in revenue. This metric helps explain the MKT/TVL ratio as it is clear the market assigns a premium for protocols that are more capital efficient.
$UNI $AAVE $MKR $COMP $SNX $SUSHI $YFI $CRV
This metric compares how much each protocol is worth relative to its earnings. A high MKT/REV could either indicate an overvalued protocol or could indicate a high growth multiple priced in by the market.
$UNI $MKR $AAVE $COMP $SNX $SUSHI
This effectively shows how much each user of the protocol is worth. A high MKT/User ratio can either indicate an overvalued protocol or that each individual user provides a lot of value. Again these metrics often require more than one to compare.
This paints a bit clearer picture than metric 5. We can see that $AAVE's high MKT/User is likely due to its high revenue per user whereas $SNX might be overvalued given that it's Rev/User does not match up with its MKT/User.
A reminder that any sole metric does give an accurate representation of whether a protocol is under or overvalued. However, by looking across a number of metrics and making comparisons we can get a better idea of a protocol's true valuation.
This articles is from @Block49Capital which contains a lot of infor, If you like the post please give them a visit.