The Crypto-TradFi Convergence | Inflection Point

Experts debate valuing L1 blockchains—balancing DCF cash-flow models, scarcity, and network effects—while Blockworks builds sell-side tools to standardize metrics.

Key Takeaways

No consensus on L1 valuation: combine DCF for revenue-generating apps with scarcity/commodity frameworks for base-layer networks; pick models by asset composition.
Use revenue (REV), TVL, and network activity as complementary proxies: REV ≈ transaction demand, TVL ≈ security, and price-to-decks-volume gauges cycle-relative valuation.
Relative valuation is actionable: compare chains to find cheap vs. expensive assets—episode cites Ethereum’s network value roughly four times Solana’s today.
Forward-looking sell-side estimates are required: Blockworks is building multi-year analyst models and IR tools that convert on-chain data into investor narratives.
Tokenomics and security link: native token price must raise attack cost above network value; deflationary models (burns > emissions) can enhance security and value.
Institutional entry needs both regulatory permission and intellectual acceptance—clear valuation frameworks and academic support unlock institutional capital.

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