1/ Why the price to sales ratio (P/S) is a useful tool for crypto investors 👇
The price to sales ratio compares a protocol’s market cap to its revenues. A low ratio could imply that the protocol is undervalued and vice versa.
2/ The P/S ratio is an ideal valuation method for early-stage protocols, which often have little or no net income.
Instead, the P/S ratio focuses on the usage of a protocol, by tracking the total fees paid (revenue) by the users of its service. More info: tokenterminal.com/faq
3/ We’re in a historically unique position, with early-stage & high-growth startups operating transparently on-chain.
This transparency makes it possible to find protocols with high usage relative to market cap.
2/ Our long-term goal is to work together with our users – the project teams and communities, investors, analysts, and other stakeholders – to build out the most robust and useful investment analysis toolkit for the crypto markets.
3/ "Launched in 1982, long before PCs and the Internet became ubiquitous, the Bloomberg Terminal brought transparency to financial markets. It connected market participants to groundbreaking data, analytics, and information-delivery service and revolutionized an industry."
1/ @UniswapProtocol's token incentive program ended on the 17th of November, which led to a drop (~50%) in the total value locked (TVL) in Uniswap.
We compared Uniswap’s TVL (liquidity) and GMV (trading volume) data to better understand the true business impact 👇
2/ TL;DR: Trading volume (GMV) does not seem to correlate with TVL or the liquidity deposited into the trading pools.
To a certain extent, TVL is required to reduce slippage in an AMM-style DEX, but it is a less accurate metric when measuring the actual performance of a DEX.
3/ Note: The ‘DeFi average’ data in the charts is calculated based on all DEXes currently listed in the Terminal: