In this Bankless podcast episode, Ryan, David, and Jonah Weinstein discuss how to value Layer 1 tokens, noting their importance as the majority share of the crypto market. Jonah critiques traditional valuation methods like Discounted Cash Flow (DCF) and REV (revenue), arguing they don't fully capture the monetary nature of L1 tokens. He introduces RSOV (Realized Store of Value), a metric tracking the realized value of staked and DeFi-deposited L1 tokens, as a better measure of long-term value accrual, emphasizing store of value over payments due to scalability and deflation. The conversation explores the implications of RSOV, its relationship to REV, and its potential as a tool for analysts to assess the value and future growth of various Layer 1 tokens like Bitcoin, Ethereum, and Solana.
