21Shares Proposes New Framework for Valuing Bitcoin, Ethereum, and Solana

Crypto assets have matured faster than traditional valuation frameworks can understand them. Bitcoin, Ethereum, and Solana are no longer speculative bets but have distinct economic profiles and growing institutional attention.

However, a survey by 21shares found that 84% of US financial advisors consider current digital asset education inadequate, with valuation being at the center of this gap.

In response, 21shares has developed a three-step framework for approaching digital asset valuation. The first step is classification, which requires applying the right tool to each asset type rather than forcing a single model across the diverse universe.

Bitcoin generates no cash flows and should be valued alongside gold using production cost analysis and market-sizing frameworks. Ethereum and Solana, on the other hand, are proof-of-stake networks that process transactions and generate real economic flows for validators, making discounted cash flow analysis applicable.