On-Chain Revenue: The New Metric for Crypto Valuation

# On-Chain Revenue: The New Metric for Crypto Valuation Traditional market capitalization has long been the primary metric for evaluating cryptocurrency projects. However, as the industry matures, on-chain revenue is emerging as a more meaningful indicator of a protocol's actual value creation. ## Why Market Cap Falls Short Market capitalization only tells us about the total value of tokens in circulation, not about the actual economic activity or value generation of a protocol. ## The On-Chain Revenue Model On-chain revenue measures the actual fees and value generated by a protocol's operations. This provides a clearer picture of which projects are creating real economic value. ## Key Metrics to Watch - Protocol fees - Transaction volume - Active users - Revenue per user ## Implications for Investors Understanding on-chain revenue can help investors identify projects with sustainable business models and long-term value potential.