Introducing RSOV: A Better L1 Valuation Metric than REV | Jonah Weinstein
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You want to recognize that your l one token is money and accrues value like money. It's less about whether or not we decide as analysts to value it, and and our view is more that this is what drives value whether or not we recognize it.
Jonah Weinstein, welcome to Bankless. Thank
you for having me.
Okay. Every layer one blockchain has a native token. The these tokens are commonly called layer one tokens. The the question is, how do we value these layer one the tokens? But and before we get to that question, I think the bigger context is, why is this question even important in the first place?
Yeah. So for this question, you know, we as investors, we wanna know what drives returns, generally speaking, so we can evaluate risks against that potential and basically know the bet we're making with l one tokens, really with any asset. And so, you know, for valuation, it's important to have a framework that gives us as analysts basically a perspective on something whether or not it's over or undervalued. And
and we also want to be able to compare blockchains. We wanna be able to compare Solana, Bitcoin, Ethereum, talk about these things in, like, the best apples to apples way possible too. Yeah.
You wanna be able to have informed discussions, and you want those discussions to be rooted in what's actually driving value to these tokens and what's driving returns. And so it's an important discussion and important to know what that is.
I am speaking of value. Right? Let's all let's all remember the vast bulk of, like, value. Know, what is the total crypto market cap right now, guys? Like 3.5. Point 3 3 point 4. Yeah. Yeah. It depends on the day. Right? A little bit. But in the in the above north of 3,000,000,000,000 range. Okay? And let's just remember, the vast majority of that is actually layer one tokens.
Like, 95% are are layer one
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