Hey Priyatham, this is an interesting perspective about token market cap valuation! Intuitively, I am not too convinced with this claim tho.
The current calculation: [Token Market Cap = current amount of tokens x current token price].
Same concept with stocks: [Stock Market Cap = current amount of outstanding shares x stock price].
While tokens and stocks are different, I think we could draw comparison when it comes to calculating market cap. In stock market, a company can choose to issue or buy back stock shares. Similarly, a token protocol (or community) can mint new coins or burn existing coins. However, what market cap reflects is the current market value of a stock or a token network, where the current token price may already price-in future expectations of the token network.
In addition, nobody can assure how a token project will evolve. Some tokens may experience hard fork, or die down, or change token supply mechanism. Therefore, while evaluating the current market cap of a token, it can be misleading to multiply current price with its expected total token supply.
To evaluate aggregate value of a token, it also depends on the type of tokens (utility, security tokens, etc.). Different types can have different approach to measure aggregate value. But, I’m not sure future token supply is a more accurate metric than current marketcap to evaluate token aggregate value.
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Token valuation is an intriguing topic however. It’s interesting to see if any methodologies will become a standard in the future. (Just like Discounted Cash Flow and a various of other models in finance)