According to BlockBeats, the long-term value of a blockchain project is rooted in its Maximum Extractable Value (MEV). This key indicator measures the scalability, security, and attractiveness of a blockchain to developers and users.
Total Value Locked (TVL) is often an exaggerated and misleading indicator as it can be easily manipulated by inflating the price of L1 tokens. A more significant measure is the Fully Diluted Valuation (FDV), which reflects the potential market value of a blockchain project. Although not perfect, it provides a rough estimate of the project's scale.
Relying solely on economic security to ensure the stability of a blockchain is insufficient, as demonstrated by the cases of LUNA and ATOM. Other security mechanisms, such as consensus mechanisms and governance models, are also necessary.
The execution layer, responsible for processing transactions and verifying data, is the core of the blockchain and the primary site for value capture. Data from Decentralized Exchanges (DEX) can more accurately reflect the prosperity of the blockchain ecosystem. To get a clearer picture, data from stablecoin exchange pairs and L1 token-U/ETH trading pairs should be excluded.
The success of a blockchain project depends on developers, not community users. Therefore, project strategies should revolve around attracting and supporting developers.
Just like the US stock market, the market value and trading volume in the crypto world may also concentrate on a few leading projects. Having a large number of users alone cannot guarantee the success of a project. It is more important to find a viable business model that can convert user value into actual benefits.
The long-term prosperity of a blockchain project needs to be built on a solid value foundation. This requires the introduction of traditional investment systems and valuation models to more objectively assess project value.
