valuecapture

Protocol Value ≠ Token Value
The real thing worth studying is how value flows into the Token.

In recent research on DeFi projects, one idea is becoming increasingly clear:

Making money from the protocol does not necessarily mean the Token has value.

When people study projects, they often focus on:

- TVL
- Revenue
- User growth

But what truly affects long-term valuation is the final step:

Whether the value created by the protocol actually flows back to Token holders.

Now, when I analyze a project, I will follow this process consistently:

Business model → Revenue sources → Revenue quality → Value capture → Valuation (PS) → Investment decision

PS can tell me “how many times’ valuation the market is willing to give,” while Value capture determines “whether the Token is worth owning.”

Going forward, when I research DeFi, I’ll pay more attention to where the value flows—not just the size of the revenues.

#crypto #defi #AAVE #Sky #ValueCapture

Bankless Co-Founder Dumps ETH: Network Bullish, Token Lagging?

David Hoffman, a co-founder of Bankless, has dumped his entire ETH stack. His thesis isn't that Ethereum is failing, but that its success as a network – dominating stablecoins, DeFi, and L2s – may no longer directly pump the ETH token. He sees Ethereum as a 'giver' to its ecosystem, not a 'taker' of value.

This move comes as ETH struggles to break key resistance levels, trading near fragile support. ETF flows are mixed, and on-chain demand isn't providing the consistent bullish signal needed. Hoffman's exit, from a long-time ETH evangelist, questions whether ETH is still the best financial vehicle for Ethereum's future growth.

Hoffman claims he's not bearish on ETH, but rather sees better opportunities elsewhere, expecting no 'structural rerating' for the token. His decision highlights a growing debate about how value accrues within the Ethereum ecosystem, especially with L2s and applications capturing more of the economic activity.

#eth #ethereum #bankless #hoffman #valuecapture