According to the author, blockchain valuation models remain debated and unstandardized, similar to early internet eras, which affects cryptocurrency trading by increasing volatility in assets like ETH and BNB. Traditional models like discounted cash flow are inadequate for decentralized systems, as they miss key dynamics such as token emissions and infrastructure value [source: article]. This uncertainty can lead to price swings, as seen in ETH's recent 2.442% rise. The proposed velocity and flow framework, focusing on transaction movements and capital reuse, offers a potential solution for traders to assess real-time market activity and make informed decisions.

According to Milk Road, since 2024, DeFi's onchain metrics have surged by 218%, while its market cap increased by 69% from $70 billion to $118 billion. If DeFi prices matched these fundamental metrics, the market cap could be around $210 billion, suggesting a potential undervaluation.