How Does the Terminal Value Calculation Change When Valuing a Crypto Network?

In traditional finance, terminal value (TV) assumes a perpetual growth rate of cash flows beyond the forecast period. For crypto networks, the TV calculation is highly speculative due to the uncertainty of long-term adoption and technology obsolescence.

Investors must carefully select a conservative perpetual growth rate, often close to zero, or use an exit multiple based on comparable network metrics. The choice of TV method significantly impacts the final valuation, as the TV often represents a large portion of the total DCF value.