A strategist at JPMorgan acknowledged that ether’s honest worth is manner decrease than its present value. In line with a set of measurements based mostly on community exercise, he calculated ether’s worth at $1,500, 55% decrease than its market value. One of many causes argued for this evaluation, is that Ethereum just isn’t so distinctive anymore, and it’s going through robust competitors from different chains like Solana and Avalanche.
JPMorgan Strategist Thinks Ether Is Overvalued
Nikolaos Panigirtzoglou, Managing Director of JPMorgan, stated that he thinks ether (ETH), the native asset of the Ethereum community, is grossly overvalued. Panigirtzoglou took a number of measures of community exercise and tried to translate them right into a quantity that represented the honest worth of the asset. He and his workforce estimated ether’s honest worth at $1,500, which is at present 55% lower than as we speak’s market value.
The JPMorgan strategist thinks the value has rallied on account of the arrogance the market has sooner or later developments of the challenge. He acknowledged:
We take a look at the hashrate and the variety of distinctive addresses to attempt to perceive the worth for ethereum. We’re struggling to go above $1,500. There’s a query mark right here. The present value is expressing an exponential enhance in utilization and visitors which may not materialize.
Ethereum Killers Galore
A part of this evaluation has its base in the concept that Ethereum’s proposal just isn’t so distinctive anymore. Ethereum pioneered the idea and implementation of sensible contracts within the cryptocurrency market. However that characteristic is now shared by a slew of chains, dubbed “ethereum killers,” which might be looking for to take a chunk of Ethereum’s market share by providing the identical traits. About this, Panigirtzoglou pressured:
It’s not distinctive. You’re already seeing competitors from Binance, competitors from Solana. And there are going to be extra sooner or later.
Whereas these Ethereum community alternatives have entered with some power available in the market, it would show troublesome to beat Ethereum’s community results. Even with some heavy enterprise capital (VC) investment backing them up, many of the innovation remains to be occurring on Ethereum, and it then spreads to different initiatives. That is the case of decentralized finance (defi) and non-fungible tokens (NFTs), options that first appeared on Ethereum after which had been ported to different chains.
That is what Jack O’Holleran, CEO of Skale Labs, instructed Insider. He acknowledged:
Regardless of main partnerships being introduced on different chains, we nonetheless see absolutely the majority of builders being pulled into the Ethereum vortex.
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