Digital Asset Valuation Framework Emerges to Address Industry Gaps

Crypto has matured faster than the frameworks used to understand it.

Bitcoin, Ethereum, and Solana are no longer speculative fringe bets. They have distinct economic profiles, real network activity, and growing institutional attention.

However, a survey by 21shares found that 84% of US financial advisors consider current digital asset education inadequate.

To address this gap, 21shares has developed a three-step framework for approaching digital asset valuation. The approach starts with classification and applies the right tool to each asset type rather than forcing a single model across a diverse universe.

The first step is classification, which determines how to value an asset. A discounted cash flow model is suitable for stocks, but not gold or Bitcoin. Because Bitcoin generates no cash flows for holders, it's considered a store-of-value alongside gold.

Ethereum and Solana are different because they're proof-of-stake networks that process transactions and generate economic flows for validators. This makes discounted cash flow analysis applicable, similar to equities.