2026-01-04 17:24:10

The core of any asset's value ultimately comes down to two dimensions. One is objective scarcity—the physical shortage, with supply inherently limited. The other is subjective recognition—community confidence, cultural endorsement, and narrative support, which create the premium space.

The same logic applies in the world of digital assets. Bitcoin is valuable not only because of its fixed supply cap of 21 million but also because of the market's long-term recognition of its store of value properties. Similarly, certain high-scarcity on-chain assets can establish a valuation system once they gain ecosystem consensus.

The question is, how to scientifically quantify these two aspects? A modern valuation framework must consider liquidity, supply cycle, community depth, and practical application simultaneously. Relying solely on scarcity can lead to overestimation, while blindly following market trends can result in being cut. Balance is the key.

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BearMarketMonk

· 01-07 15:40

It sounds very impressive, but this set of theories collapses in practical application. I have seen too many "highly scarce" on-chain assets with vibrant communities and perfect narratives, only to turn into a mess overnight. The core issue is not about balance; it’s that human nature can never be balanced. As long as there is a premium space, someone will dare to gamble. Whether it’s scarcity or recognition, in the end, it all becomes a game between the scythe and the leeks.

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OPsychology

· 01-06 23:29

It sounds good, but in reality, subjective approval can't be controlled at all. Once a narrative collapses, the asset is finished.

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DeFiGrayling

· 01-06 00:50

The concept of scarcity is correct, but the current problem is that a bunch of projects are all touting their own scarcity, and as a result, it's everywhere...

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NFT_Therapy_Group

· 01-04 17:52

No matter how well the scarcity story is told, without real-world application support, it's just air. I've seen too many cases like that.

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WenMoon42

· 01-04 17:47

Well said, but what really hits home is — most people can't tell the difference between scarcity and narrative at all. When a token can be traded from 100 yuan to 1000 yuan, 99% of the time it's the latter causing the hype.

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LiquidityWizard

· 01-04 17:40

actually the liquidity part is what most people get wrong... they obsess over scarcity metrics but ignore the bid-ask spread entirely, statistically significant oversight if you ask me

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gm_or_ngmi

· 01-04 17:37

That's right, but this theory essentially becomes worthless during a bear market; subjective approval of this thing means nothing.

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CryptoPunster

· 01-04 17:35

In simple terms, the duality of scarcity and recognition—sounds professional, but in reality, it's just betting on when the market confidence will falter.

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