Though unlike its contemporaries, analysts say Ethereum is seriously undervalued, citing on-chain data indicating that ETH is trading far below a fair price.
Ethereum is "Doubly" undervalued: analyst explains.
With the usage of the Ethereum network rocketing to fresh all-time highs despite the sinking price, Mythos Capital founder Ryan Sean Adams believes that ETH is "Doubly" undervalued.
He shared the image below to illustrate his optimistic point, showing that for the past four years, the price of ETH has been closely correlated with the transaction fees Ethereum users pay to get their transactions processed.
Due to increased market activity, heavy stablecoin adoption, and gas-guzzling smart contracts on Ethereum, fees have skyrocketed over recent weeks while ETH's price has largely stagnated.
The Mythos Capital founder continued that he expects Ethereum to develop into a store-of-value network in the coming years, which will see ETH begin to trade above the transaction fees relationship indicated above.
Adding to the ETH bull case is the Ethereum 2.0 blockchain upgrade, slated to begin its launch later this year, likely around July or August.
Cochran wrote: "With the release of ETH 2.0, we're going to see ETH drastically increase its tx/s and therefore its commercial and consumer viability."
Per previous reports from CryptoSlate, Michael Novogratz - current CEO of "Crypto merchant bank" Galaxy Digital - wrote in a Twitter thread that Ethereum remains in a "Proving phase." That's to say, unlike Bitcoin - which touts an over ten-year track record and a $150 billion+ market capitalization - Ethereum is still a "Venture bet" because of its relative nascency and market size.
Chief investment officer of crypto fund Arca Jeff Dorman added in a separate comment that because Ethereum's price action is so intertwined with that of smaller-cap altcoins, it makes it "Not an interesting investment for anyone outside of the die-hard ETH community."
Analyst: Ethereum is seriously undervalued right now for these fundamentals reasons
gepubliceerd op May 26, 2020
by Cryptoslate | gepubliceerd op Coinage
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