Pro
Decentralized Exchange Fundamental Analysis and Relative Value Comparison
Key Insights
- The top seven decentralized exchanges (DEXs) sold off similar amounts this year despite stark differences in their underlying trading volume, total value locked (TVL), users, revenue, and capital efficiency.
- At first glance these metrics make some protocols look more attractive at the surface than they appear when looking into the underlying drivers behind the numbers.
- Underlying value accrual back to tokenholders differs wildly across the protocols.
- SNX is a particularly attractive potential investment opportunity given their valuations vs the competition and growth trajectory.
- dYdX will be a protocol to watch as metrics continue to improve, but token inflation and execution moving to Cosmos are real risks. SUSHI is undervalued by every metric versus peers but off-chain issues and growth concerns make this protocol more of a value trap than cigar butt type investment.
Introduction
Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.
Tom is a Sr. Research Analyst at Messari. His primary focus is on Layer-1's as well as the relationship between traditional finance and crypto. Prior to joining Messari, Tom worked in Investment Consulting at Meketa and Investment Management at SSGA. Tom studied Finance at Bentley University and earned his CFA and CAIA Charters.
Mentioned Assets