Digital Asset Valuation Requires Tailored Approach, Says 21shares Report
Crypto assets such as Bitcoin, Ethereum, and Solana are no longer viewed as speculative fringe bets, but rather as assets with distinct economic profiles and real network activity. However, a recent survey found that 84% of US financial advisors consider digital asset education inadequate.
The main issue is valuation, which requires a tailored approach for each asset type. A new research report by 21shares outlines a three-step framework for digital asset valuation, starting with classification and applying the right tool to each asset.
Bitcoin's unique characteristic is that it generates no cash flows for holders, placing it in the store-of-value category alongside gold. For Bitcoin, production cost analysis and market-sizing frameworks provide useful reference points. The report estimates the all-in production cost as a floor-price reference, which has historically corresponded with periods of miner stress and market support.
Ethereum and Solana are different, as they are proof-of-stake networks that process transactions, support decentralized applications, and generate real economic flows for validators. A three-stage discounted cash flow model is applicable to these assets, cross-checked against relative comparisons to Web2 application ecosystems.