What Are Some Common Valuation Models for Utility Tokens?

There are several common valuation models for utility tokens, though none are perfect. The equation of exchange (MV = PQ) is often used to estimate a token's long-term value based on the economic activity of its network.

Other models include discounted cash flow (DCF) analysis, which projects future cash flows, and network value to transactions (NVT) ratio, which is similar to the price-to-earnings (P/E) ratio in traditional finance.