Crypto Assets Valuation: Multidimensional Analysis and Professional Evaluation Framework

Crypto Assets, as a form of digital or virtual assets secured by encryption technology, have a value composition that is extremely complex and stems from various factors including utility, supply and demand dynamics, technological infrastructure, and market sentiment. Mainstream Crypto Assets such as Bitcoin and Ethereum offer decentralized finance trading mechanisms, potential returns, and privacy protection features, which together constitute their core value proposition.

Basic Framework for Valuing Crypto Assets

For investors, traders, and market participants, mastering the valuation methods of crypto assets is crucial. Accurate valuation can support the optimization of investment decisions, grasp market trends, and effectively assess related risks and returns. In the highly volatile crypto market, a deep understanding of value drivers can significantly enhance the quality of strategic decision-making, whether for long-term investment positioning, short-term trading operations, or daily trading activities.

Professional investors often combine various evaluation models, including network value to transaction ratio ( NVT ), and coin days destroyed ( CDD ), to construct a more comprehensive evaluation system. These evaluation frameworks focus on different types of crypto assets: payment tokens mainly rely on market cap analysis, smart contract platforms are more suitable for applying discounted cash flow models, while utility tokens need to emphasize usage rates and adoption levels.

Analysis of Real-World Scenarios for Value Realization

Decentralized Finance ecosystem

By 2025, DeFi platforms have achieved significant expansion, allowing users to engage in lending and trading without traditional financial intermediaries. Ethereum, as the leading platform for DeFi services, supports numerous applications that provide a diverse range of services from collateral loans to yield farming. These application scenarios clearly demonstrate the practical value of Crypto Assets in offering financial services that are more efficient, inclusive, and cost-effective than traditional banks.

Value Assessment Metrics:

• Total locked value ( TVL )
• Protocol Revenue to Trading Volume Ratio
• User Growth Rate and Retention Rate

Non-fungible Token Market

NFT technology has completely restructured the digital art and collectibles market. Through the ownership proof mechanism provided by blockchain and the technical characteristics that ensure the uniqueness of each item, NFTs create digital scarcity and a means of value storage. High-value transaction cases, such as Beeple's digital artwork selling for over $69 million, highlight the potential value scale of the NFT market and its broader impact on the digital economy.

Key Factors for NFT Valuation:

• Creator reputation and historical transaction record
• Scarcity and Artistic Value
• Community Engagement and Liquidity Indicators

Cross-border payments and fund transfers

Crypto Assets have become an efficient mechanism for cross-border remittances, providing a low-cost and high-speed alternative solution compared to traditional fund transfer services. In regions with currency instability or restricted financial systems, Crypto Assets offer a viable option for preserving value and ensuring liquidity. For example, residents of countries with severe inflation, such as Venezuela, are increasingly using Crypto Assets to hedge against hyperinflation and maintain purchasing power.

Cross-border Payment Value Indicator:

• Comparison of transaction fees and processing times
• Network throughput and liquidity depth
• Global Access Points and Interoperability Indicators

Market Data and Technical Indicator Analysis

The total market value of crypto assets has experienced significant fluctuations, reaching a peak of approximately $2 trillion by the end of 2023. This not only reflects the increasing institutional recognition of crypto as an asset class but also its inherent market volatility. It is noteworthy that the transaction volume of major blockchain networks shows a stable growth trend, with the Ethereum network processing over 1.2 million transactions daily by mid-2025, highlighting the market trends of increased adoption and enhanced practical value.

Professional investors can combine various technical indicators for value assessment:

| Assessment Model | Applicable Scenarios | Limitations | |---------|---------|--------| | Metcalfe's Law | Network Effect Assessment | Limited by Scalability | | NVT/NVTS Ratio | Relationship between Network Value and Transaction Volume | The judgment criteria are relatively subjective | | Cash Flow Discounting Model | Agreement Valuation Generating Transaction Fees | High Complexity of Parameter Forecasting | | Staking Yield Analysis | Network Health and Participation Assessment | Highly Affected by Market Volatility |

Build a Comprehensive Evaluation System

The value of crypto assets is influenced by multiple factors, including technological innovation trends, market supply and demand dynamics, and changes in the regulatory environment. For investors and market participants, the key to successfully navigating the crypto market lies in deeply understanding how these factors and their interactions impact asset value. As the market matures, the potential of cryptocurrencies as a viable alternative to traditional financial systems becomes clearer, reflecting their intrinsic value in the digital age.

An effective Crypto Assets assessment framework should include:

1. Fundamental Analysis: Evaluate the project team, technical architecture, governance mechanisms, and practical application scenarios.
2. On-Chain Data Analysis: Monitor the number of active addresses, transaction volume, coin distribution, and network security metrics.
3. Market Structure Analysis: Examine liquidity depth, trading pair distribution, market maker participation, and trading concentration.
4. Emotional Indicator Assessment: Combine social media analysis, capital flow, and derivatives market data

For traders, it is possible to utilize professional data analysis tools on mainstream trading platforms, combined with the aforementioned evaluation framework, to develop more scientific trading and investment strategies that effectively seize market opportunities and manage risks.

Investors should closely monitor market trends, technological advancements, and regulatory changes to make more informed asset allocation decisions in a volatile market environment. Accurately understanding these value drivers can help stakeholders identify projects that truly possess long-term value in the dynamically evolving crypto assets space.