Network Value

Definition ∞ Network value refers to the total worth or utility derived from a connected system of participants or assets. In digital contexts, it often relates to the aggregate value of assets secured by a blockchain or the collective utility provided by a decentralized network. This metric can indicate the overall health and adoption of a system.
Context ∞ The concept of network value is a subject of ongoing analysis, particularly in assessing the intrinsic worth of decentralized protocols and digital assets. Current discussions often involve various valuation models, such as Metcalfe’s Law, and their applicability to blockchain ecosystems. Analysts are focused on understanding how user growth, transaction volume, and developer activity contribute to the sustained appreciation of network value.