If you’ve been on CT lately, you’ve probably seen people yelling about R E V. If you have no idea what I’m talking about, then this post it’s for you.
Some think REV it’s the ultimate metric to value chains & price assets, others think it’s just another useless metric. In the middle, you can find me.
But none of that matches what actually happens in this market.
The short version: REV stands for Real Economic Value. It’s the total amount users pay to use a chain: fees, tips, and MEV; includes in-protocol fees (base fee, priority fee, blob fee) and out-of-protocol fees (MEV boost tips, JITO tips. It can be considered as a proxy for demand as it measures how much people are paying to use a chain —> the revenue from selling blockspace.
Blockworks, who created dashboards to track this metric, and Jon Charb are the primary promoters of this metric.
Now, my (long) version.- REV as a metric is useful, as it shows if people are actually using a chain. But it doesn’t tell you who captures that value, or if it’s sustainable. Moreover, it does *not* justify the current valuation of an asset as it does not determine market price.
Ethereum was initially dominating REV metrics but has declined since a while ago, and Solana overtook them, mainteining higher REV since then.
It´s worth noting that Solana is leadin
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