📊 How to Evaluate Whether an L1 Token is Priced Correctly – Methods & Real-World Examples Valuing L1 has never been easy, but it can be systematized into a clear framework. Key point: don't mix apples with oranges – each type of token (L1, L2, protocol, L0) needs its own analysis framework. Here we will focus only on L1 tokens, divided into 2 groups: Multi-purpose L1: $ETH, $SOL, $AVAX, $BNB, $SUI … Application-focused L1: HYPE, dYdX, RUNE, TON… 🔑 Steps to Value L1 1️⃣ Revenue Only consider the actual revenue that comes back to holders (burn, buyback, staking reward). Revenue leaving the system → ignore. If there is less than 1 year of data → take the number of months x4 to estimate. 2️⃣ FDV/Revenue Ratio Similar to the P/S ratio in tech stocks (usually ~8–15). In crypto, it is often higher because the market values based on future expectations. 3️⃣ Growth & Usage Need to monitor: number of active wallets, number of transactions, volume, TVL. The important thing is not...
SOME BLOCKCHAINS PULLING CLEAR CASH FLOW
If you missed the SOL or AVAX wave... Don't worry, we will analyze each ecosystem to see which one has the most support.
$SOL -> $JTO, $ME Not pumped -> $PUMP, $PYTH, $W Pumped back -> Wear down
$AVAX -> $JOE Pumped
BSC -> $THE, $LISTA, $CAKE
Especially, you need to see which Narrative the cash flow is pushing into, and catch the wave to see if that Narrative is trending.
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