Chainlink Network KPIs and LINK price fared poorly in FY22, but increasing market share dominance, revenue diversification, and transactions are reasons for optimism.
This is as good as it get's for a valuation of Chainlink. We borrowed some of your metrics here for our internal thesis and valuation, specially given that Chainlink has gone fully fledged multi product since then
You can only estimate. I took the estimation of 4% / 25M = 1.6^-9 per LINK staked. If a project is 10m cap that’s $0.016 per LINK. A few projects should be likely to hit 100M-1B cap though. Also maybe it’s distributed to the secondary 75M staking cap. 20 ish BUILD projects too. Good reason to think there will be a few dollars per LINK of value.
Is it possible to factor in BUILD rewards into the staking calculation? Also there are a few more feeds that aren’t listed on the docs or data.chain.link
so many numbers!!
This is as good as it get's for a valuation of Chainlink. We borrowed some of your metrics here for our internal thesis and valuation, specially given that Chainlink has gone fully fledged multi product since then
Yeah, and they add another BUILD token roughly every 2 weeks.
You can only estimate. I took the estimation of 4% / 25M = 1.6^-9 per LINK staked. If a project is 10m cap that’s $0.016 per LINK. A few projects should be likely to hit 100M-1B cap though. Also maybe it’s distributed to the secondary 75M staking cap. 20 ish BUILD projects too. Good reason to think there will be a few dollars per LINK of value.
Is it possible to factor in BUILD rewards into the staking calculation? Also there are a few more feeds that aren’t listed on the docs or data.chain.link
Thanks for all your comments. Very clear.
With regards to the Dune data, where did you pull this from? And when you say you sampled node operators? How did you do this?
Hey, excellent post. Few questions that came to mind:
- (sheet 1) why is Chainlink's revenue a percentage of TVE? How does it make money? Are there any other revenue streams?
- (sheet 2) why are you assuming the price feed coverage reaches (/even increases) to 100% of gross profit?
- (sheet 1) what are the different Gartner assumptions with regards to margins?
- (sheet 3) where did you get the numbers from with regards to IT infra, hardware, staffing in operating expenses (NOPs, cloud cost per node etc.)