Buying.com: Network Effects That Govern the BUY Token MAHWAH, NJ / ACCESSWIRE / April 20, 2021 / According to Wikipedia, Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n 2). This law was initially linked to the usage of phones. For instance, if there were only 1 phone user in the telecommunications sphere, it was useless as there would be no one to call. With 2 phone users, each party had at least one person to talk to. In this manner, if the number of users in the ecosystem increased, it increased the number of transactions. The same laws govern the social media markets, so much so that the valuation of companies in that space is directly correlated to the number of users in the network.