web3: Crypto Market Valuation Shifts Towards Revenue and Real Usage Data

CoinWorld reports:

The pricing method for tokens in the crypto market is changing. Several industry institutions have told CoinDesk that relying solely on CoinMarketCap rankings to assess project value is waning. Institutional funds are now more focused on whether protocols generate revenue, have real users, and can convert usage into sustainable value.

Declining Importance of Market Capitalization Rankings

Hunter Horsley, CEO of Bitwise, stated that in recent cycles, the market often priced new public chains as "discounted versions of leading projects," comparing their size rather than the quality of their business. This approach is now weakening.

He mentioned that investors are starting to pay more attention to the actual trading activity and revenue structure of the Hyperliquid HYPE token, rather than simply comparing it to larger blockchain projects. Horsley also noted that some wealth management institutions newly permitted to enter the crypto market do not care about a token's position on the market cap list.

Institutional Funds Favor Revenue-Generating Tokens

Jasper De Maere, an over-the-counter trader at Wintermute, indicated that over the past 12 to 18 months, some funds have shifted from underlying blockchain infrastructure to application layer projects and app chains, focusing on areas such as DeFi, perpetual contract trading platforms, and decentralized physical infrastructure networks.

He believes that fundamentals determine which tokens can enter the institutional selection range and whether projects can survive during market downturns; however, intraday price fluctuations are still largely driven by leverage, funding rates, position changes, and cascading liquidations.

• In the first half of 2026, institutional spot OTC accounted for about 72%
• A year ago, this proportion was about 59%
• Focus areas include mainstream coins, revenue-generating tokens, and RWA

Divergence in Performance Between Tokens and Crypto Stocks

Bitwise's market review shows that in the first half of 2026, cryptocurrencies overall fell by 36%, while stocks of crypto-related public companies rose by 23% during the same period. This reflects that investors are beginning to price these two asset classes separately.

Public companies typically have audited revenues and cash flows, making their valuations clearer; many tokens, however, are still more driven by trading sentiment and capital flows. The article suggests that this does not mean crypto stocks will continue to outperform tokens, but it indicates that the two are no longer moving in sync as they did in the past.

On-Chain Verifiable Metrics Gaining Importance

Brendan Ma, head of investment strategy at the Arbitrum Foundation, stated that analysts are currently more focused on revenue composition, trading activity, and value retention than they were a year ago, and are more cautious in distinguishing which metrics are truly reliable.

He believes that more valuable metrics typically require real costs to form and can be verified on-chain, such as fee income, actual paying users, and funds retained in the network, including stablecoin balances and tokenized asset sizes. In contrast, metrics like address counts and total locked value can be more easily amplified by incentive programs or bot behavior.

For example, Arbitrum has processed over 2.7 billion transactions, with more than 500 million transactions occurring in 2026 alone. The foundation states that Robinhood Chain currently has an annualized revenue of about $40 million. According to its expansion plan, 10% of the net protocol revenue from this chain will flow back to the Arbitrum ecosystem.

• Arbitrum has processed over 2.7 billion transactions
• Transaction volume in 2026 has exceeded 500 million
• Robinhood Chain's annualized revenue is about $40 million

Stablecoins, RWA, and DeFi Still Viewed Positively

Zach Pandl, head of research at Grayscale, told CoinDesk that Bitcoin is still primarily viewed as a macro asset related to fiat currency substitution demand, while the market outside of Bitcoin is undergoing stricter fundamental scrutiny.

He believes that in the coming years, stablecoins, tokenized assets, and DeFi tools will continue to drive the growth of digital asset demand, but only a few fundamentally strong tokens may truly benefit, while projects lacking revenue and real usage support will find it harder to attract funding.