Bankless Introducing RSOV: A Better L1 Valuation Metric than REV | Jonah Weinstein
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May 26, 2025 
Join Jonah Weinstein from Skycatcher as he introduces RSOV, a revolutionary metric for evaluating Layer 1 assets. He critiques traditional valuation models like REV and DCF for their shortcomings in the crypto space. Discover how RSOV combines realized value with market dynamics to offer a clearer picture of token worth. The discussion highlights the unique status of Bitcoin and the rising significance of Ethereum in decentralized finance. Get ready for fresh insights that could reshape your understanding of digital currencies!
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Introducing RSOV Metric
- RSOV measures the realized store of value through cumulative net inflows to staking and DeFi in dollar terms.
- It adapts the realized cap concept from Bitcoin to smart contract platforms, focusing on fundamental monetary use cases.
RSOV Captures Layer One Economy
- RSOV rises as more tokens are staked or used in DeFi, reflecting real store of value demand.
- Layer two usage increases RSOV by bringing native tokens into DeFi even if some transactions shift off mainnet.
RSOV Includes but Extends REV
- REV correlates with token price but does not fully explain long-term value formation.
- RSOV incorporates REV naturally but also captures store of value demand not visible in transaction fees.