A popular cryptocurrency analyst is comparing decentralized cryptocurrency exchanges (DEX) to traditional financial (TradFi) markets to calculate their real value.
Anonymous moderator of InvestAnswers Tell He wants to see how decentralized finance (DeFi) platform Uniswap (UNI) stacks up against two mainstream stock markets, as well as centralized cryptocurrency exchange Coinbase.
“Compare Uniswap to a TradFi exchange. That’s how I do a lot of valuations. I said, ‘What would be the value in the real world?
I pull up the NYSE [NYSE], Nasdaq, Coinbase and Uniswap. I calculated their market cap, calculated their revenue, then divided the market cap by the revenue and got different ratios. “
The analyst noted that Uniswap, with a market cap of $6.7 billion and revenue of $1 billion, is almost twice as expensive as the New York Stock Exchange by that metric. While Coinbase currently has a market cap to revenue ratio of 2:1, organizers believe the leading U.S. exchange could face challenges in 2023.
“Using this very rough metric, Uniswap at 6.7 is the most expensive. Coinbase is actually the cheapest. Companies like NYSE and Nasdaq are actually very profitable.
Coinbase may experience profitability issues and revenue growth issues next year. That’s why it’s getting worse and worse, in addition to all the other bad news and press coverage it’s getting. “
The InvestAnswers moderator believes that, overall, decentralized exchanges have weathered the recent bear market well, and said that Uniswap could triple in value, even though it is not the “fastest horse in the DeFi niche.” “.
“Considering the growth of DEXs and their popularity, and how they survive and thrive during bear markets [market] In winter, I think the future of Uniswap is very bright…
I believe DEX is the future. [UNI is] Over the past 12 months, the all-time high is down 81% and down 54%. The question is, can Uniswap do 3x from here? I said yes, it can. But are there faster horses? Yes.
Does inflation lead to price suppression? Yes. But can this be 3x? Yes.
I don’t have Uniswap. I did it last year but not anymore. “
At the time of writing, Uniswap is down 2.47% in the past 24 hours and is trading at $8.27.
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