Why Most DATs Trade at a Discount, According to Bitwise

[kevin1]

Hougan outlines three reasons DATs usually underperform their asset value: illiquidity, operational expenses, and execution risk. Costs reduce crypto-per-share and uncertainty further depresses valuations. As he puts it, “Most reasons for a discount are certain; most reasons for a premium are uncertain.” The result: most DATs trade below their true crypto equivalent.

[Nahid Hossen]

Discounted trading usually reflects uncertainty more than weakness.

[Abdul Khan]

Bitwise’s explanation makes sense — valuations are still stabilizing.