How to valuate tokens based on revenue? 💸
Crypto tokens are increasingly judged by protocol revenues as investors adopt equity-style valuation for blockchain projects. Many compare a token’s market cap to its ARR (annual recurring revenue) to gauge potential value 🧮
🔍 A popular measure is the Price-to-Sales ratio (P/S). It’s calculated by dividing a project’s market cap by its annual revenue. A lower ratio hints that a token might be undervalued.
Market Cap ÷ Annual Revenue
Below are a few protocols with notable 30-day revenue but low market cap 👇
🔵Hyperliquid (HYPE) – $51.59 million
🔵Aerodrome (AERO) – $28.08 million
🔵Raydium (RAY) – $22.37 million
You can use DeFiLlama fees dashboard to view real-time protocol revenue data across different DeFi platforms 📊
