Bankless ROUNDTABLE: The REV Debate - Real Metric or Fake News? Jon, Bread, & Andy8052
23 snips
May 21, 2025 Dive into the intriguing debate on Real Economic Value (REV) and its impact on crypto markets. The hosts scrutinize how ETH and SOL prices align with REV and evaluate its role in network valuations. They highlight contrasting revenue perspectives between Ethereum and Solana and discuss the sustainability of relying on REV. The conversation also touches on the competitive dynamics of blockchain ecosystems and the implications for investors in a rapidly evolving landscape. Plus, insights on the future of blockchain applications add another layer of intrigue.
AI Snips
Chapters
Transcript
Episode notes
Understanding REV as Value Metric
- REV (Real Economic Value) measures network fees and MEV tips users pay to a network, reflecting value capture for token holders.
- It serves as both a revenue-like metric for proof of stake networks and a demand signal for network utility.
Block Space Utility Drives REV Value
- Block space value stems from utility tied to apps using it, impacting valuations of smart contract platforms.
- Bitcoin's zero REV but highest value shows REV's limited relevance for non-smart contract chains.
Valuation in Crypto is Nascent
- The crypto industry lacks consensus on valuation methods, reflecting its early and evolving nature.
- REV attempts to quantify chain demand and space usage but is only part of the complex valuation puzzle.