Golden Finance reports that a viewpoint posted by Nick Tomaino, the founder of 1confirmation, on the X platform has sparked heated discussions in the field of cryptocurrency investment. He said that as early as ten years ago when he held Bitcoin, he had proposed that ETH should be valued based on the “corporate revenue” model. He emphasized that in the field of investment valuation, what is subjectively believed to happen is not the key; what matters is what actually happens.
From Nick Tomaino’s perspective, his proposition on the valuation model of Ethereum stems from a profound understanding of the unique value of Ethereum. Ethereum, with its trusted neutrality, holds an important position in the blockchain field. In the Ethereum ecosystem, numerous products such as Sky, Aave, Uniswap, and Polymarket all offer free usage services to the community. Users need not worry about third parties abusing trust, arbitrarily changing rules, or stealing assets. This feature makes Ethereum not only a cryptocurrency but more like a decentralized “super platform”, carrying the operation and development of countless applications. Valuing ETH based on the “company revenue” model means comparing Ethereum to a company and evaluating the value of ETH by considering the revenue generated from various economic activities within its ecosystem.
In the traditional financial field, the “corporate revenue” model is one of the common methods for evaluating the value of enterprises. By analyzing the company’s operating income, profits and other indicators, investors can judge the company’s profitability and development potential, and then determine the reasonable valuation of the company’s stocks. Introducing this model into the valuation of Ethereum has its certain rationality. A large number of decentralized applications (DApps) are running on the Ethereum network. During their operation, these applications generate various forms of economic activities such as transaction fees and protocol income. Take Uniswap as an example. As a well-known decentralized exchange on Ethereum, users need to pay a certain percentage of transaction fees when exchanging tokens. This portion of the transaction fees will eventually flow into the protocol’s fund pool in the form of ETH. If the revenues generated by all similar economic activities within the Ethereum ecosystem are integrated and calculated, it might be possible to reflect the true value of ETH from a brand-new perspective more accurately.
However, this valuation model also faces many challenges. First of all, the Ethereum ecosystem is extremely large and complex, and accurately calculating the revenue of all economic activities within the ecosystem is no easy task. The revenue sources of numerous DApps are diverse, and some applications may also have privacy protection requirements, making it difficult to comprehensively obtain and accurately calculate revenue data. Secondly, the cryptocurrency market is significantly different from the traditional financial market. Its price fluctuations are influenced by various factors such as market sentiment, regulatory policies, and technological development, and the fluctuation range is often greater. Even if a seemingly reasonable valuation is calculated through the “company revenue” model, in the complex environment of the cryptocurrency market, the actual price of ETH may still deviate significantly from it.
The belief emphasized by Nick Tomaino that “Ethereum is regarded as a means of value storage is spreading” also provides support for his valuation view. With the development of the cryptocurrency market, an increasing number of investors have begun to view Ethereum as a store of value, similar to the position of gold in traditional financial markets. Against this backdrop, valuing ETH based on the “corporate revenue” model helps investors analyze the rationality and potential of Ethereum as a store of value from the perspective of economic fundamentals.
At present, the market has not yet formed a unified standard for the valuation methods of ETH. Traditional valuation methods based on supply and demand relationships and technical analysis are still widely used. The valuation viewpoint of the “corporate revenue” model proposed by Nick Tomaino provides new ideas and directions for the valuation of Ethereum, triggering in-depth thinking among investors and industry experts on the value assessment of Ethereum. In the future, as the Ethereum ecosystem continues to develop and the cryptocurrency market gradually matures, whether this valuation model will be accepted and applied by more people and how the valuation system of ETH will evolve are worth the market’s continuous attention.
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