Distributed Compute Tokens Undervalued Despite Real Utility, 300% Gain for CoreWeave

Tech investors have shown a strong preference for potential, as evidenced by the high valuations of GameFi tokens despite their low user numbers and revenues. This trend is particularly evident in the case of Axie Infinity, where the number of active players did not match the platform's valuation. However, distributed compute tokens, which offer real utility in serving AI, storage, and GPU markets, do not enjoy the same speculative premium, even when compared to their traditional finance peers like CoreWeave (CRWV).

CoinMarketCap values the category of tokens for decentralized networks that provide GPU power for AI and other compute workloads, including well-known tokens like BitTensor, Aethir, and Render, at $12 billion. In contrast, the GPU as a service industry is valued at around $8 billion this year, with projections to grow to $26 billion by 2030, according to research group MarketsandMarkets. Despite this, CRWV closed at $163, giving it a market cap of $79.2 billion. The company’s recent earnings forecast suggests it trades at more than 15 times forward sales, with a net loss of $314.6 million in the first quarter. This loss was driven in part by stock-based compensation and continued infrastructure buildout. Investors continue to reward CoreWeave for its dominant position in centralized AI infrastructure, with its stock up 300% year-to-date. The company is tightly integrated with Nvidia and has high visibility through contracts with OpenAI and other enterprise clients.

Meanwhile, decentralized compute networks offer similar services—AI inference, rendering, and compute power—without the need to raise billions in debt or equity. These networks act as brokers connecting existing GPUs to users, saving the capital expenditure of buying their own server farms. They are functional systems already processing real workloads, and the brokerage model works for customers. Yet, their collective market value remains a fraction of CoreWeave’s. While the market treats GameFi with irrational exuberance, distributed compute tokens may be suffering from the opposite problem. Despite addressing the same market need as CoreWeave and offering a more capital-efficient and globally scalable model, they remain modestly valued.