Digital Asset Valuation Framework Aims to Plug Education Gap in Crypto Industry

Crypto assets have matured rapidly in recent years and are now recognized as distinct economic entities with real network activity and growing institutional attention. Despite this, a significant portion of financial advisors in the US feel that current digital asset education is inadequate.

A new research report from 21shares provides a three-step framework for approaching digital asset valuation. The approach emphasizes classification, where each asset type requires a different method for valuation.

Bitcoin and gold are classified as store-of-value assets, meaning they generate no cash flows for holders. For these assets, production cost analysis and market-sizing frameworks provide the most useful reference points.

Ethereum and Solana, on the other hand, are proof-of-stake networks that process transactions, support decentralized applications, and generate real economic flows for validators. These assets can be valued using discounted cash flow analysis, the same tool used to value equities.