Venture Capitalist Sees Ethereum’s Undervaluation
Crypto investor Ryan Sean Adams recently argued that Ethereum’s current valuation of around $2,200 is “hilarious” given its strong on-chain activity and role in the industry. Adams highlighted data such as the platform’s billions in gas fees, its transition to deflationary status, and the rewards earned by stakers. He also mentioned the potential approval of spot Ethereum ETFs by the SEC, which could attract institutional capital to the market.
Ethereum Gains Value from On-Chain Activities
Ethereum’s value is also derived from its on-chain activities, with layer-2 solutions locking over $14.9 billion in total value. Leading platforms like Arbitrum One and OP Mainnet process thousands of transactions daily. Adams compared Ethereum to traditional companies using metrics like price-earnings ratios and suggested that the coin could reach over $22,000 this cycle.
Hot Take: Ethereum’s Growth Potential
Ethereum’s current valuation may seem low considering its on-chain activity and potential for further growth. With factors like the approval of spot Ethereum ETFs and increasing demand for mainnet block space, it is possible that Ethereum’s value will continue to rise significantly. However, it is uncertain how long the market will undervalue this cryptocurrency.
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