A low revenue multiple tells you less about how cheap a protocol is than how much confidence the market has in its revenue. xRev compares a protocol’s market cap with its annualized revenue. Direction alone can be misleading. A falling xRev may reflect revenue growth that valuation has not caught up with. It may also mean market cap is falling faster than revenue. A rising xRev may reflect valuation moving higher or revenue declining faster than market cap. Comparing trailing xRev with the current run rate clarifies what is happening on the revenue side. The trailing multiple can remain low because it still includes stronger revenue months that have already passed. The latest 30-day pace shows whether that multiple reflects what the protocol is earning today. Revenue that proves durable can change market expectations.(Delphi Digital)