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RECAP: VALUING CRYPTO BASED ON FEES
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RECAP: VALUING CRYPTO BASED ON FEES

Crypto Fee Analysis & Ranking: with Hypothetical Valuations

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InvestAnswers
Aug 26, 2023
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NUGGETS OF ALPHA

  • Blockchain daily active users are down to March 2023 levels

  • BASE emerged as top tier chain in terms of daily transactions

  • Chains continue to reduce their fees to attract more transactions

  • 74% of all the daily fees happen on Ethereum’s ecosystem

  • ETH receives the lion's share with nearly $5M per day in fees

  • SOL dominates the number of daily transactions

  • TRX dominates the number of daily active users

  • MATIC is the winner in terms of fully diluted market cap / daily active users

  • SOL's value per our analysis comes to $123.58 or a Delta of 464.82%

  • If I were a value investor in crypto, I would not consider any chain with under $10K in fees per day


Crypto fees are an overlooked area by most analysts in this space. Today we will compare the fees for various chains and see if it is possible to build a valuation model.


Let's start with a backdrop reviewing the daily active addresses' activity during the summer slump. This chart displays the

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