THE INTERNET'S BLUEPRINT FOR ETHEREUM

Summary from the TLDR Crypto newsletter

You can't value Ethereum like a company or a normal L1. Instead, you have to treat it like the internet's base protocols (TCP/IP, DNS). It is a public good, so its main value comes from enabling everyone else. Ethereum should be valued based on captured value, Ethereum-dependent economic flow, and trust surplus. Captured value is the current market cap of ETH + L2s + DeFi blue chips, which is ~$0.6-0.9T today. Ethereum-dependent economic flows are like digital GDP, which is the annual value of activity that actually relies on Ethereum (e.g., stablecoins, tokenized assets, DeFi, NFTs, etc. which is capitalized at ~$0.3-3T. Trust surplus is the invisible value from lower fraud, counterparty risk, and rent extraction. It is estimated to be around $0.15-0.6T.