TOKEN VALUATION IN THEORY AND PRACTICE

Summary from the TLDR Crypto newsletter

There is no clear “L1 premium” in fully diluted valuations (FDV). That being said, it does exist in market cap comparisons, with L2s trading at FDV/revenue multiples of 100-250x versus L1s at 118-140x. Optimism has significantly higher multiples largely due to successful collective strategy implementation and adoption of OP Stack technology. The data challenges common assumptions about blockspace restriction and revenue generation, with Arbitrum showing lower L2 profit than Base despite higher fees.