network Price-to-sales ratio

Legend - Green area is market price of coin, in US$; Blue line is market cap 12 months ago divided by green area today; White line is market cap today divided by green area today:

network Price-to-sales ratio explained

The above charts display the same indicators as the prior section, in US dollar terms. To offer a different perspective from the prior section, however, each blockchain's price is now shown in the left axis.

The PSR ratios remain the same, derived from the same calculation. As a reminder, they garner this perspective:

  • Current PSR. This shows how many years it takes for a blockchain's annual revenue—that's total transaction fees and new coins from the block reward—to equal the current market cap.
  • Trailing PSR. This shows how many years it would take for a blockchain's annual revenue to equal the market cap 12 months ago.

Again, remember that the annual revenue described above is always based on a rolling, trailing 12-month (in fact trailing 365-day) basis, and all block rewards and transaction fees are priced in US dollars, based on the prevailing spot price each day.