L2 Valuations are broken.

A Key Takeaway from my latest @MessariCrypto report.

Based on the available data on @growthepie_eth, the median P/S multiple (FDV divided by annualized May network fees) of L2 tokens is 1,447x, while the average is even higher at 3,481x.

High P/S ratios are exhibited across nearly all L2s, regardless of independent factors such as FDV, tech stack, use case, etc.

Network fees, typically the largest or sole revenue stream returned to tokenholders, have been falling, not rising, across the sector. Such aggressive pricing presumes growth trajectories that current revenue trends do not justify.

And revenue is only part of the equation: operating costs occur largely offchain and are seldom disclosed, so true net income is opaque at best.

Valuations have decoupled from fundamentals, and repricing feels less a question of if than when.