In our Token Value Series, we have discussed the qualitative components that contribute to the perceived value of capital assets.
Today's headline piece, focuses on the quantitative components that play a role in determining the value of tokens and protocols.
Through this series, you'll gain a more comprehensive understanding of why a token or protocol holds its value and can build a successful Web3 business accordingly.
What's in store for today's Web3 journey:
🔢 Quantitative Factors of Token Price:The Latest in our Token Value Seriesby Robert Mullins
The perceived value of capital assets is determined by both qualitative and quantitative components.
Let's dig into the latter
Quantitative analysis in the Web3 space is becoming more prevalent as real businesses generate revenue and provide data for analysis.
Key quantitative components discussed include:
Total Value Locked (TVL)
Amount of users
Revenues
Market Cap/Total Value Locked (MC/TVL), Price/Sales (P/S), Price/Fees (P/F)
Discounted Cash Flow (DCF).
These components provide insights into product-market fit, adoption rates, revenue generation, value capture mechanisms, and valuation comparisons.
Founders should consider blending qualitative and quantitative data to shape their narrative, attract investors, and showcase the value of their company and products.
Weekly Market Updates by Miki Mak of our Ascent Team
Marco
The Fed warned that there is potentially 2 or more rate hikes by year-end. In the mean time, the US economy showed much stronger-than-expected growth in Q1, 2.0%, above expectations of 1.4%. This helps relieve the expectation that the US is heading toward a recession.
The crypto market mostly traded flat with little fluctuations. Positive sentiment fuelled by the Bitcoin ETF news make BTC maintain above $30k
On-chain performance
Total TVL slightly increase back to $45bn. DEX trading volume is mostly below $2.5bn
Strong performers include:
Filecoin: 767% up, mainly contributed by MineFi
SmartBCH: 65% up, $7.6m TVL, mainly contributed by MistSwap, TangoSwap
All the Top10 Blockchains experienced TVL decrease except Bixin
Primary Market
The market's getting more quiet these days: 5 deals announced with $45.7m total fund raised over the past week, 2 in gaming, 2 in CeFi. Notable raises:
One Trading (Crypto exchange spun out from Bitpanda): $32.7m series A back by Keyrock, Wintermute
Pinion Games (Gaming studio developing Fableborne): $5.5m back by Shima Capital, Blizzard Fund, Merit Circle, Zee Prime Capital
Superstate (Regulated financial products that bridge tradfi and blockchain ecosystems): $4m seed, back by ParaFi Capital, 1kx, CoinFund
Trending news
Binance’s euros banking partner, Paysafe Payment Solutions, will stop supporting the crypto exchange after September.
HSBC enables Bitcoin, Ethereum ETF trading in Hong Kong like the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
PancakeSwap will go live on the Polygon zkEVM network in line with broader plans to expand its user base and build protocol revenues
In today's episode of The Metaverse Podcast, we host Fred Thiel of Marathon Digital Holdings (NASDAQ: MARA), a company committed to enhancing the Bitcoin network by sustainably increasing the computational power, also known as the "hash rate".
Fred joins our host and CEO, Jamie Burke, in discussing the future of cryptocurrency and blockchain technology. If you're a Bitcoin enthusiast, blockchain innovator, or a technology futurist, be sure to tune in to:
•Learn about Fred's unique leadership philosophy which empowers teams to execute a shared vision.
•Gain insights into the future of Bitcoin mining, particularly its dependence on widespread adoption.
•Delve into the complexities of Bitcoin from an accounting perspective, understanding the various challenges and opportunities it presents.
•Understand the impact of ETFs and the role of adoption in influencing Bitcoin's market dynamics.
•Broaden your horizons regarding the vast opportunities for blockchain beyond financial applications, such as gaming, identity management, healthcare data management, and title management.
•Comprehend the differing regulatory approaches towards crypto across various regions, noting that Europe and the UK have taken a proactive stance, offering a defined framework or "sandbox" for innovation, while the US has been more reactive.
📣 Congrats to Hundo on being Awarded a 2023 Technology Pioneer by World Economic Forum
Futureverse's Root Network is now LIVE. More than just a blockchain, The Root Network enables seamless user experience and asset interoperability across The Open Metaverse
