Crypto Fundamentals & Valuation
A grounded progression through traditional valuation ratios, their real crypto-applicability boundary, and the crypto-native metrics built for the gap.
Who it's for: People who want to evaluate a crypto project's fundamentals, and understand why traditional ratios don't always transfer.
9 steps · ~56 min of guided reading, plus research and tool steps
What you'll learn
- • Explain what a valuation multiple is and the question it's built to answer.
- • Understand P/E, P/B, ROE, and Free Cash Flow, and honestly state why each mostly doesn't apply to crypto assets.
- • Explain NVT and TVL-to-Market-Cap as the crypto-native metrics built for that gap.
- • Evaluate a crypto project's documented fundamentals using Kaavon's existing project-evaluation framework.
- 1Guide
6 min read
How to Evaluate a Crypto Project Before Investing
Start with Kaavon's existing framework for evaluating a project's real fundamentals.
- 2Article
8 min read
Price-to-Earnings (P/E) Ratio
Learn the foundational traditional valuation multiple, and why it needs earnings most crypto assets don't have.
- 3Article
7 min read
Price-to-Book (P/B) Ratio
See a second traditional ratio with the same honest crypto-applicability boundary.
- 4Article
7 min read
Return on Equity (ROE)
Learn a profitability metric with no standardized crypto-native equivalent at all.
- 5Article
7 min read
Free Cash Flow (FCF)
Understand the cash-generation concept, and its only emerging, non-standardized crypto parallel.
- 6Research
Traditional Valuation Metrics vs. Crypto-Native Valuation Metrics
See why the two families depend on genuinely different kinds of data, structurally.
- 7Article
8 min read
Network Value to Transactions (NVT) Ratio
Learn the crypto-native metric built specifically for this gap, on its own terms.
- 8Article
7 min read
TVL-to-Market-Cap Ratio
Learn a second crypto-native valuation lens, specific to DeFi protocols.
- 9Article
6 min read
Protocol Revenue
Learn the crypto-native parallel closest to traditional revenue, and what it can verify.