Ecosystem Valuation

Definition ∞ Ecosystem valuation involves assessing the total economic worth of a blockchain network, including its native tokens, applications, user base, and developmental activity. This process extends beyond simple market capitalization to consider the utility, network effects, and future growth potential of the entire system. It provides a more comprehensive measure of a project’s overall health and future prospects.
Context ∞ News about digital assets often cites ecosystem valuation metrics to gauge the success and potential of various blockchain projects. Analysts frequently debate the most appropriate methodologies for accurately assessing the value of decentralized networks. The ability to effectively measure and compare different ecosystems remains a challenge for investors and researchers.