CRYPTOASSET MARKET COVERAGE INITIATION:
VALUATION
AUGUST 30, 2018
Overview
We will expand on Valuation of cryptoassets, using the following
models:
•
Top Down: using the quantity theory of money to deduce
the value of cryptoassets needed to support a forecasted
economy
•
Peer-Based: using multiples of network-specific metrics to
arrive at relative valuations
•
Bottom-Up: using discounted cash flow models to
estimate value of networks that provide yield
Name Price ATH % from
ATH Days
Since ATH
BTC $7,038 $20,089 (65%) 255
ETH $290 $1,432 (80%) 228
XRP $0.35 $3.84 (91%) 237
BCH $557 $4,330 (87%) 252
EOS $6.24 $22.89 (73%) 122
$61.84
$375.29
(84%)
253
LTC

•
•
Little value in XRP ($0.01), and cryptoassets which
are misleadingly marketed, not needed within their
own
network,
and
have
centralized
ownership/validation
them for more details.
PLEASE SEE LAST PAGE FOR IMPORTANT DISCLOSURES
Most “Other Utility” application-specific networks
hold very little value, in their current constr






* Refers to Market Capitalization estimate, calculated using 2050 estimated supply
using respective network inflation schedules
Market Cap ($MM)
Name
Key Takeaways
• We estimate the amount of cryptoasset market
value needed to support economic activities to
expand from ~$500B next year to $3.6T in 2028
• 90%+ of cryptoasset value will be derived from
penetration of offshore deposits in the next decade
• Currency and Privacy networks will be the largest
beneficiaries, as most fundamental value will stem
from store of value use cases
•
Upside (5-yr) In BTC ($96k), XMR ($18k), and DCR
($535), cryptoassets which apply unique value
propositions within deep and viral markets
Current
2050 Implied*






30D %
G/L
90D %
G/L
52-Wk %
G/L
Launch
Year
$121,332
$147,690
(13.47)
(6.16%)
107.8%
2009
BTC
$29,475
$42,625
(36.83)
(49.3%)
(24.38%)
2015
ETH
$13,733
$34,663
(22.78)
(43.08)
100.19%
2013
XRP
$9,639
$11,678
(31.72)
(44.37)
(2.15%)
2017
BCH
$5,655
$9,111
(22.06)
(49.23)
373.79%
2018
EOS
$3,591
$5,188
(25.3%)
(47.97)
(1.45%)
2011
LTC





* Refers to Market Capitalization estimate, calculated using 2050 estimated supply using
respective network inflation schedules.
This Is part four of a five-piece series initiating coverage on the
cryptoasset universe. In our next note, we will cover Custody &
Trading.
Our prior notes can be found here:
Market Composition
Network Creation
Technical Underpinnings
Satis Group Crypto Research will eventually move to a password protected subscription
•
Downside in BCH ($268), and cryptoassets which
attempt to inherit brand recognition and provide
minimal technological advantage to incumbents
model. To be sure you can continue to access our research and inquire about pricing please
contact: sales@analysthub.com. This report was prepared by the Satis Group research team
led by Sherwin Dowlat assisted by Michael Hodapp. Please note, Satis Group Crypto Research
is powered by Analyst Hub and their robust institutional compliance program. Please contact