Why is a multiplier needed in cryptocurrency? A multiplier is a coefficient that shows how efficiently an investment in cryptocurrency projects works. It is used in financial analysis, asset valuation, and even leveraged trading. Where is the multiplier applied? 🔵 Token valuation — Helps determine the fair price of an asset by comparing it to market counterparts. — For example, P/E (Price-to-Earnings) in traditional finance or TVL/MC (Total Value Locked to Market Capitalization) in DeFi. 🔵 Choosing promising crypto projects — Helps investors evaluate whether the market is overheated and whether a token has growth potential. — A low P/S (Price-to-Sales) ratio can indicate an undervalued asset. 🔵 Liquidity and stability analysis — Used to assess the profitability and stability of crypto exchanges, DeFi platforms, and blockchain ecosystems. — Metrics like ROE (Return on Equity) help understand how efficiently a project utilizes capital. 🔵 Leveraged trading — In spot and futures trading, the multiplier indicates the size of borrowed funds. — For example, 10x means you are trading with an amount 10 times your deposit. CryptoFam #crypto #cryptofam