Definition ∞ On-chain value floor represents a theoretical minimum valuation for a digital asset, derived from its fundamental utility and economic activity recorded on its blockchain. This metric seeks to quantify the intrinsic worth of an asset based on verifiable network usage. It offers a data-driven perspective beyond speculative pricing.
Context ∞ This analytical tool is increasingly used by market participants to assess the underlying value of cryptocurrencies. It helps distinguish between speculative price movements and genuine network strength. Reports often cite the on-chain value floor to support arguments about an asset’s long-term price potential and resilience against market downturns.
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