Most Ethereum valuation models indicate ETH is undervalued: Analyst

The autochthonal token of the Ethereum network, Ether (ETH), is undervalued successful 9 retired of 12 commonly utilized valuation models, according to Ki Young Ju, a marketplace expert and CEO of crypto marketplace investigation level CryptoQuant.

A composite “fair value” utilizing each 12 valuation models prices ETH astatine astir $4,836, an implicit 58% summation compared to its terms astatine the clip of this writing.

Each valuation exemplary was rated connected a three-tiered standard for reliability, with 3 being the astir reliable. Eight retired of the 12 models diagnostic a reliability standing of astatine slightest two. “These models were built by trusted experts crossed academia and accepted finance,” Ju said. 

12 antithetic ETH valuation models awesome that ETH is undervalued astatine existent marketplace prices conscionable northbound of $3,000. Source: ETHval

The App Capital valuation model, which accounts for full on-chain assets, including stablecoins, ERC-20 tokens, non-fungible tokens (NFTs), real-world tokenized assets (RWAs), and bridged assets, prices ETH astatine a just worth of $4,918, according to ETHval.

Using Metcalfe’s Law, which states that the worth of a web grows successful proportionality to the quadrate of existent progressive users oregon the fig of nodes successful the network, projects an ETH terms of $9,484, meaning the plus is implicit 211% undervalued, according to the model.

Valuing ETH done the Layer-2 (L2) framework, which accounts for the total worth locked (TVL) successful Ethereum’s layer-2 scaling network ecosystem, projects a terms of $4,633 per ETH, meaning that ETH is astir 52% undervalued.

The composite just worth of ETH implicit 1 year. Source: ETHval

The Ethereum assemblage and analysts proceed to statement however to worth the world’s archetypal astute declaration level properly, with galore saying that accepted valuation models are not capable to worth nascent integer assets and decentralized blockchain networks.

Related: Ethereum ICO whale cashes retired $60M aft 9,500x summation arsenic apical 1% support buying ETH

Despite the mostly rosy outlook, 1 valuation exemplary says ETH is grossly overvalued

The Revenue Yield valuation model, which values ETH by the yearly gross generated by the network, divided by the staking output connected ETH, says that ETH astatine existent prices of implicit $3,000 is overvalued by implicit 57%.

ETH is overvalued, according to the Revenue Yield valuation model. Source: ETHval

Revenue Yield is the astir reliable valuation exemplary for accurately pricing ETH, according to ETHval’s criteria and methodology.

ETH should transportation a terms tag of astir $1,296, according to the model, highlighting the Ethereum network’s dwindling gross generation arsenic fees scope grounds lows and competing networks sorb immoderate of its marketplace share.

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