It seems that an Ethereum-based DeFi ecosystem is flourishing these days. Take a look at the complete details about all this below.
A popular crypto analyst has recently compared a decentralized crypto exchange (DEX) to traditional finance (TradFi) marketplaces in an effort to calculate its real-world value.
The anonymous host of InvestAnswers said not too long ago that he wants to see how the decentralized finance (DeFi) platform Uniswap (UNI) stacks up against two mainstream stock markets as well as the centralized crypto exchange Coinbase.
“Comparing Uniswap to TradFi exchanges. That’s how I do a lot of my valuations. I say, ‘What would it be worth in the real world?’”
He continued and said this:
“I pulled up New York Stock Exchange [NYSE], Nasdaq, Coinbase and Uniswap. I took their market caps, took their revenue, and divided market cap by revenue and got different ratios.”
He also made sure to note the fact that Uniswap, with a $6.7 billion market cap versus $1 billion in revenue, is nearly twice as pricey as the NYSE based on the metric.
It’s also worth noting the fact that Coinbase currently has a 2:1 ratio of market capitalization to revenue, the host thinks the leading US exchange could face challenges in 2023.
“Uniswap at 6.7 is the most expensive using that very crude metric. Coinbase is actually the cheapest. Things like NYSE and Nasdaq are actually very profitable.”
The analyst continued and said this:
“Coinbase could be running into profitability problems and revenue growth problems next year. That’s why it’s getting dinged, apart from all the other bad news and press that it’s getting.”
We suggest that you check out the complete article posted by the Daily Hodl in order to learn more details about this.
Regarding the price of ETH today, at the moment of writing this article, BTC is trading in the red, and the coin is priced at $1,629.