Today, I'll focus on only 3 cryptos, ETH(Ethereum), SOL(Solana), TRX(Tron). These are representative cryptos of L1(Layer 1) chains.
Actually, I've been thinking about crypto evaluation methods during the past 7 years. 4 years ago, I tried to evaluate cryptos by Marketcap devided by TVL(Total Valued Locked). If figure is lower than other chains, relatively, it can be undervalued.
As time goes by, we can check 24h tx(Transactions) fees data from De-Fi platforms such as swap pools or DEX[Decentralized Exchange, looks like a traditional CEX(Centralized Exchange)].
Alright! Let's try to calculate annualized tx fees from 3 major coins.
(Estimates)
👉 ETH annual tx fees: $4.57m × 365(days) = $1.6b
Excluding L2 chains, like BASE
👉 SOL annual tx fees: $15.5m × 365(days) = $5.7b
👉 TRX annual tx fees: $1.93m × 365(days) = $0.7b
👉 ETH marketcap: $397b
👉 SOL marketcap: $121b
👉 TRX marketcap: $22b
Let's take an idea from PER, so how many years does it take from Marketcap divided by Annual tx fees?
Marketcap / Annual tx fee
👉 ETH = $397b ÷ $1.6b = 248y(Years)
👉 SOL = $121b ÷ $5.7b = 21y
👉 TRX = $22b ÷ $0.7b = 31y
Of course, please consider this data is excluding ETH L2 chains.
Anyways, in conclusion, SOL is the king of altcoins as L1 chains, and TRX is undervalued, considering TRX marketcap.
Alright, let's advance TVL evaluation methods. Now we have Bridged TVL data. Bridged TVL means an original chain's assets TVL + other chains' tokens TVL.
So, If a chain has high bridged TVL, compared to marketcap, the chain can be undervalued. I think this evaluation model is more advanced than the previous model. Cause, high bridged TVL means since many investors trust a blockchain, they used the bridging function a lot.
Let's calculate liquidation value by Marketcap / Bridged TVL.
👉 ETH = $397b ÷ $229.764b = 1.73
👉 SOL = $121b ÷ $46.921b = 2.58
👉 TRX = $22b ÷ $66.185b = 0.33
It seems bridging users trust Tron chain more than other chains 🤔 Interesting 🧐 Rich bridging users prefer using Ethereum and Tron.
So, my conclusion is.. SOL is the leader of all altcoins now, and it's still undervalued in terms of 24h tx fees. However, rich users prefer using Ethereum and Tron. Furthermore, TRX is still potential to grow more with respect to these data. Let's keep our eyes on these 3 major coins 🤔
I'm new here how does it work
Can anyone teach me
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