Valuing protocols with Token Terminal financial statements and P/S, P/F
Thread467 words
Bullish call$RDNT−99.9%since this piece, moved against the call · 1 more callHow it played out ↓Shows how Token Terminal's standardized financial statements and P/S and P/F multiples let investors compare dApps and L2s TradFi-style, with Q2 2023 examples of apparent over and undervaluation.
Key claims
P/S = FDV / annualized revenue, P/F = FDV / annualized fees
RDNT looks undervalued vs AAVE on P/F and P/S
ARB looks undervalued vs OP on both multiples
0/ financial analysis on crypto protocols used to be time-consuming & complex
tools like @tokenterminal drastically change this
let me introduce you to @tokenterminal's Financial Statements for protocols & how valuation multiples can help identify over/undervaluation
🧵 (0/16)
1/ when talking to #TradFi people I often notice that the idea of decentralized protocols providing financial services & generating revenue by doing so, is an abstract concept, hard for many to understand
2/ often it's not understood that protocols & tokens, in many ways, work like traditional companies & equity
3/ these protocols provide a service, have customers, generate revenues and incur cost
sure, not every protocol is equally easy to assess, but many leave room for the application of due diligence and valuation methods from traditional finance
4/ @tokenterminal, a leader in providing all kinds of project-specific on-chain data, is a great enabler in this regard
5/ it has a great functionality available for free, that you can use to assess the financial health of a protocol using #TradFi concepts that most people are already familiar with
6/ the financial statement tool provides detailed insight into a project's financial situation in a standardized and intuitive way that people know from TradFi
example below: @GMX_IO
7/ this allows for easy comparison between dApps or DAOs (or what were once companies). For example between $GMX and $GAINS 📊🔍
example below: @gains_trade
8/ or we can have a look at the lending bluechip @AaveAave 📊🔍
9/ and its @arbitrum based competitor @RDNTCapital 📊🔍
10/ we can also compare financial data for L1 or L2 networks ⛓
let's have a look at the financial statement of @arbitrum 📊🔍
11/ and the other optimistic EVM rollup @optimismFND 📊🔍
12/ this standardized report provides detailed insight into the protocol's profitability and by combining that with market data allows for TradFi-style valuation multiples to be calculated 📈
13/ the valuation multiples used by token terminal are:
📊 P/S = fully diluted market cap/annualized revenue
📊 P/F = fully diluted market cap/annualized fees
14/ from the Q2/2023 multiples we can for example infer that
1️⃣ based on fees generated, $GMX is likely relatively undervalued compared to $GMX 💸
2️⃣while based on protocol revenue (token holders), $GNS seems undervalued compared to $GMX 💰
15/
3️⃣ we also see that $RDNT is clearly undervalued compared to $AAVE, both in terms of P/F and P/S 👀
4️⃣ and also based on P/S and P/F ratios, we see that $ARB is undervalued compared to $OP 👀
16/ hope you liked this short thread on how to use @tokenterminal in financial analysis of protocols 📊🔍
make sure to check out their tools here 🔗
tokenterminal.com/terminal
& don't forget to follow me @expctchaos for more content like this and lots of tech deep dives on modular scaling & zk tech 🚀
7 images on X
How the calls played out · since 19 Apr 2023
Prices as of 23 Oct 2026This piece takes a view on $RDNT, $ARB, so those moves are read against the call. Other assets it covers are shown as context, not as calls.
$RDNTRadiant CapitalBullish thesis
−99.9%
Moved against the call · over 3.5 years
- At publication
- $0.454
- Now
- $0.000508
- vs BTC
- −100.0%
- After 1 month
- −31%
- After 3 months
- −37%
- After 1 year
- −56%
- High since
- 0.0% 19 Apr 2023
- Low since
- −99.9% 16 Jun 2026
−89%
Moved against the call · over 3.5 years
- At publication
- $1.67
- Now
- $0.182
- vs BTC
- −96%
- After 1 month
- −31%
- After 3 months
- −26%
- After 1 year
- −34%
- High since
- +35% 12 Jan 2024
- Low since
- −96% 16 Aug 2026
Mapped in this piece · best to worst since
Since then
Zero has written 11 more pieces on Arbitrum and $ARB since this one.
Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish thesis is read as a call; explainers, maps and mentions are context. Not financial advice.