Validators process transactions and receive fees from users (supply-side fees).

Cardano is a smart contract platform for decentralized applications (a blockchain). Cardano was founded by Charles Hoskinson & Jeremy Wood and launched in 2017.

ADA holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

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Cardano

# Cardano P/S ratio (fully diluted) Methodology

## 1. Overview

The P/S ratio (fully diluted) is defined as the fully diluted market cap of Cardano relative to its annualized revenue. This metric is used to evaluate the project's valuation in proportion to the revenue captured and retained by the protocol treasury. The relationship between the total market value of the native asset and the user-paid fees captured by the network is shown through this standardized valuation multiple.

## 2. Data sources

- **Fully diluted market cap**: Derived from the Fully diluted market cap metric
- **Revenue**: Derived from the Revenue metric

## 3. Step-by-step calculation

### Component A: Annualization of revenue

- **Purpose**: Project the daily revenue of the Cardano protocol over a one-year period
- **Logic**: Daily revenue values are multiplied by a factor of 365 to determine the annualized revenue. This calculation is based on the assumption that the current rate of revenue capture by the treasury remains constant over a yearly timeframe.

### Component B: Ratio derivation

- **Purpose**: Calculate the final valuation multiple based on the fully diluted market cap
- **Logic**: The fully diluted market cap is divided by the annualized revenue. All constituent values are processed in USD to ensure that the resulting ratio is calculated using consistent currency denominations. Daily values are generated based on the closing price and total supply of the native asset.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

${market_cap_fully_diluted} / (rolling_avg(${revenue}, 30) * 365)

Fully diluted market cap relative to annualized revenue.

CardanoADA

P/S ratio (fully diluted)

P/S ratio (fully diluted)

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