The Value State 002

This week we proceed to cover financial metrics of revenue-generating digital assets:

• Effective revenue multipliers
• Changes relative to prior period
• Reasons of these changes

Financial metrics overview

Below we provide Effective Revenue Multipliers calculated for tracked productive assets, and their relative changes (changes exceeding 8% in absolute terms indicated only):

The metric decrease indicates that revenue becomes cheaper vs. previous period (so it is a positive signal of revenue growth or m.cap decrease), the metric increase means the opposite.

We remind the reader that the Multiplier indicates the assessment price of $1 of revenue in the future year period (under the simple linear annualisation).

Disclaimer: The effective market cap / revenue metrics shown are experimental and illustrative, may be inaccurate, and are provided for educational purposes only. This is not investment advice.

Exploring Multiplier changes

Note, that smaller (7D, 30D) periods multipliers have more volatility than 90D, 180D, 365D.

Yield Basis ($YB):

• The Effective M.Cap decreased 21.5% (due to token price decrease; veYB added ~1.3m veYB during the week)
• The multipliers have remained almost the same since the revenue from veYB also decreased in the recent period.

Curve ($CRV):

• 30D multiplier shows that $veCRV generated revenue better in 17 Dec - 16 Jan period than in the 8 Dec - 7 Jan period
• It reflects revenue growth in past two weeks (week 25th Dec - 1st Jan was much worse than early January)
• $CRV price and Effective M.Cap remains almost the same

Aerodrome ($AERO):

• Aerodrome clearly increased its revenue vs. price in recent 7D period, while other periods remain ~same
• Revenue increased, token price decreased ~10%, and the revenue pricing changed -17%

Velodrome ($VELO):

• $VELO 7D -28%, 30D -18% what means that revenue priced significantly cheaper than before
• The token price remained almost unchanged since 7th Jan
• Desptie earning significantly more revenue in 7D and 30D periods, the market valuing it as before (token price didn't grow)

Pump.fun ($PUMP):

• $PUMP demonstrates very unusual behavior: Effective MCAP grew, but multipliers significantly decreased, even taking into account +12% token price grows vs. previous 7D periods
• However, $PUMP earned significantly more revenue in 7D and 30D periods that even outpaced token price growth by almost 25% in 7D
• It means that market started to price $PUMP cashflow growth, but price lags from the actual fundamental numbers

Hyperliquid ($HYPE):

• Hyperliquid had almost constant revenue in recent periods, and this is reflected in the fact that 7D multiplier changed accordingly to the token price change
• It means -9.7% of token price results in -9.7% of revenue pricing since revenue didn’t change a lot
• Other multipliers beyond 7D didn’t change a lot that additionally confirms revenue vs price stability

AAVE ($AAVE):

• AAVE cashflow is very stable since buybacks have approximately the same amount every day
• The 7D metric changed +12.6%, while others remain approximately the same
• Why could it happen with a stable amount of USD spent for buybacks? $AAVE price is almost the same as on Jan 7th. However, there were no buybacks at 12th Jan which resulted in 7D multiplier growth.

Utility Highlights

• Optimism announced buybacks for $OP using the sequencer fees
• Lighter expands its token design of $LIT with staking requirements to enter LLP. Also, $LIT staking is planned to generate fees
• Polygon $POL is rapidly gaining adoption as the stablecoin payment layer, generating >$100k average fees daily (and all of this with ultra low tx fee). The recent acquisitions aimed to accelerate this. With P/S of 25.5, it has the lowest multiplier among other chains ($HYPE is excluded from this consideration since its multiplier is based on buybacks, not pure infra utilization). In Valueverse, we didn't plan to use Eff Multiplier for chains (since it designed for applications), but Polygon metrics are almost ready to be evaluated like a real business and not chain coordinational value (which typically has very high multipliers)

Valueverse Updates

Newly arrived new research & supported assets at Valueverse

• $WORM/$BETH, utility structure for two tokens belonging to the brand new privacy project on Ethereum
• The introduction to Effective Revenue Multipliers was published

Feedback appreciated

It is an experimental research focused on efficient m.cap/revenue metrics. We are open to feedback:

• Twitter DMs
• Telegram chat

Disclaimer: This article and the accompanying analysis are provided by Valueverse for research and educational purposes only. All token valuation frameworks, metrics, comparisons, and conclusions discussed herein are experimental in nature and may rely on incomplete, estimated, delayed, or incorrect data, as well as subjective assumptions and methodologies.

The presented analyses do not represent definitive valuations, forecasts, or assessments of financial performance, and should not be interpreted as statements of intrinsic value. Digital assets and tokens are highly volatile, and their economic characteristics may change over time.

Nothing in this publication constitutes investment advice, financial advice, legal advice, or a recommendation to buy, sell, or hold any asset. Readers are solely responsible for their own research, risk assessment, and investment decisions.