In the context of investing, a multiple refers to a financial metric used to evaluate the value of an asset. It typically compares a company’s market value to a key financial figure, such as earnings, revenue, or cash flow. For cryptocurrencies, multiples are often used to assess the valuation relative to metrics like daily transaction volume or user base.A common multiple is the price-to-earnings (P/E) ratio. While this is often associated with stocks, similar concepts apply to cryptocurrencies. For example, the market capitalization of a coin may be analyzed against its transaction volume, offering insights into whether it is overvalued or undervalued.Investors use these multiples to make decisions about buying, selling, or holding a cryptocurrency. A high multiple might indicate that a coin is overpriced, while a low multiple might suggest potential for growth. Understanding multiples can help traders identify trends and make informed investment choices.