DYOR Founder: The estimated Fully Diluted Valuation (FDV) of LayerZero (ZRO) is between 5.3 billion and 9.7 billion US dollars

Hitesh Malviya (@hmalviya9), the founder of the encryption analysis platform DYOR, posted on X that based on chain usage data analysis, it is estimated that the fair FDV of Layerzero (ZRO) is between 5.3 billion and 9.7 billion US dollars:

"Firstly, we need to choose Axelar Network for a relative valuation of ZRO. Both are building infrastructure for cross-chain communication. Axelar is more like a B2C platform; it's both a communication platform and an asset transfer infrastructure, making money by directly charging users AXL. This provides strong value capture for AXL. On the other hand, LayerZero is more like B2B2C; while managing communications, asset transfers are usually handled by independent bridges like Stargate. In this case, how LayerZero will generate income remains unclear. My best guess would be that it might involve some models around OFT and protocols built on LayerZero itself where ZRO could potentially be used as payment tokens.

LayerZero also has a validator network called Relayers so if they plan to further decentralize they may introduce staking services.Currently GMP is key metric for Axelar including messages and assets transfers.It processes about 4000 GMP daily in past 30 days,totaling approximately 120k GMP with its FDV reaching $885 million.Messages are also key metrics for LayerZero.They process about 44k messages daily which is eleven times traffic processed by Axelar.Their FDV might also fall within same range being six to eleven times higher than Axelar's FDV.Therefore,it's expected this figure would be around $5.3 billion to $9.7 billion."