I’m starting to believe this may be why tokens like Zora, Helium, Pump, Aster, Plasma, etc… are all topping out sub $5B
If you want to trade the market looking forward I think you essentially need to determine how much the market cares about revenues and how much monetary premium the market is willing to ascribe to new and existing projects.
Despite the rise of the "revenue meta," crypto valuations remain primarily driven by monetary premiums rather than fundamentals.
Crypto marketcap (ex. $BTC & stables) trades at ~250x P/S ratio. For comparison:
Nasdaq - 6.25x
S&P - 3.36X
Ultimately, the majority of capital in crypto is seeking exposure to assets with money-like properties, not onchain businesses with sustainable revenues.
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