The EPIC Anomaly Explained

Market typically follows certain ratio patterns when valuing blockchain networks. Take a straightforward example: when comparing a Layer 1 blockchain against its flagship ecosystem token, the valuation gap reveals something interesting.

Using token FDV as the metric, ETH demonstrates this dynamic clearly—it trades at roughly 101x the valuation of major ecosystem projects built on it. This ratio isn't arbitrary; it reflects how the market prices the base layer infrastructure against the applications built on top.

Understanding these "normal market ratios" is crucial for spotting where valuations diverge from historical patterns. When a project breaks this mold, it signals either massive undervaluation or market mispricing worth examining.