REV and F/R Multipliers: A New Perspective on Public Chain Valuation

REV, as an indicator measuring the total amount of user payments on the public chain, has similarities with corporate revenue. It includes on-chain transaction fees, off-chain tips, and MEV. Currently, there are differing opinions in the industry regarding REV: some advocate for maximizing REV, believing it can reduce network marginal costs and expand the user base; while others argue that REV is not suitable as a long-term value indicator and should be minimized.

Recent data shows that SOL, TRON, and ETH are the main leaders of REV. Compared to traditional on-chain revenue, REV has increased the weight of non-user-side revenue factors. The MEV of Solana significantly contributes to its REV increase.

The advantages of REV include being difficult to manipulate and reflecting the activity level of retail investors; its disadvantages include lagging, inability to comprehensively reflect the situation of public chains, and potential biases. We should view REV dialectically and avoid using it in isolation.

The F/R multiple is the ratio of FDV to REV, similar to the price-to-earnings ratio, reflecting the market's premium level on the project's valuation. A higher F/R multiple may indicate valuation bubbles or optimistic expectations. BTC has the highest F/R multiple, while SOL and Tron are lower.

REV and MEV are related but conceptually different. MEV is more of a micro indicator to measure network health, while REV focuses on the overall revenue premium of the public chain. The MEV/REV ratio can be used to monitor ecological health.

Overall, REV is not equivalent to the value capture of on-chain native tokens, and there are differences in the FDV/REV ratio between different chains. There are also essential differences between blockchain and enterprises, as well as between tokens and equity. By combining REV with other indicators, a relatively comprehensive evaluation system for public chains can be constructed. When using these indicators, we need to be flexible and consider multiple factors comprehensively.

![REV and F/R Multipliers: A New Valuation Method for Public Chains](https://img-cdn.gateio.im/webp-social/moments-666e8c6496540554d389881cedba1807.webp01

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