Valuation Perpetuals

Definition ∞ Valuation Perpetuals typically refer to financial instruments or methods used to assess the worth of assets that are expected to yield benefits indefinitely. In finance, a perpetual is a security with no maturity date, paying constant periodic interest. When applied to valuation, it often involves calculating the present value of a continuous stream of future cash flows. This approach helps determine the enduring worth of an asset.
Context ∞ In the digital asset space, valuation perpetuals can relate to perpetual swaps, a type of derivative that allows continuous exposure to an asset’s price without an expiry. News often covers trading volumes and funding rates for these instruments on cryptocurrency exchanges. Additionally, the concept may apply to long-term models for assessing the enduring value of decentralized protocols or network tokens, reflecting their ongoing utility and cash flow generation.