Bitcoin generates no cash flows for the holder. That places it alongside gold in the store-of-value category, where production cost analysis and market-sizing frameworks provide the most useful reference points.
Ethereum and Solana are different. Both are proof-of-stake networks that process transactions, support decentralized applications, and generate real economic flows for validators. That makes discounted cash flow analysis applicable – the same tool used to value equities.
Get the classification wrong, and the valuation framework that follows is built on the wrong foundation.
Bitcoin's floor, Ethereum's cash flows, Solana's upside case
The report works through each asset in detail. For Bitcoin, 21shares estimates the all-in production cost and marks it as a floor-price reference rather than a price target, and one that has historically corresponded with periods of miner stress and market support. A market-sizing framework against gold's market capitalization adds the relative dimension.
For Ethereum and Solana, 21shares applies a three-stage discounted cash flow model to estimated validator cash flows, then cross-checks the outputs against relative comparisons to Web2 application ecosystems, specifically the Apple App Store and Google Play Store, which share structural similarities as platforms that earn fees from developers building on their infrastructure.
The implied valuations are sensitive to assumptions, and the report is explicit about that. The purpose is not a definitive price target. It is a disciplined process for narrowing the range of plausible outcomes.
The discipline is the point
Digital asset valuation is inherently imprecise. The asset class is young, historical data is limited, and most frameworks are adapted from traditional finance. What the 21shares approach offers is structure: a repeatable sequence that investors can apply across the broader digital asset universe – not just Bitcoin, Ethereum, and Solana.
Read the full report to work through each valuation method, the assumptions behind the numbers, and what the outputs suggest about where each asset stands today.
