Ethereum At $2,200 Is “Hilarious”; Is A 10X Incoming?

Share This Post

Crypto investor Ryan Sean Adams argued on December 4 that Ethereum’s (ETH) current valuation of around $2,200 is almost “hilarious” given the strengthening on-chain activity and the blockchain’s role in the sphere.

Venture Capitalist: Here’s Why Ethereum Is Grossly Undervalued

Adams cited data like the first smart contract platform generating billions annually in “gas” fees, transitioning to becoming deflationary after merging in September 2021, and the over one million validators staking earning over 5% as rewards. Moreover, the venture capitalist pointed out the potential of the United States Securities and Exchange Commission (SEC) approving spot Ethereum ETFs in the long run. 

For now, BlackRock and Fidelity, two of the world’s most prominent traditional finance players, have applied to issue these derivative products. Though the SEC has yet to approve any spot crypto ETFs, the agency will authorize one or multiple, likely in early Q1 2024. 

Overall, the crypto market expects any spot ETF, including that of Ethereum, to attract billions in institutional capital. Beyond external factors like the SEC and ETFs talk, Adams also pointed out the rising demand for mainnet block space from the multiple layer-2 solutions running off-chain rollups parallel to Ethereum. 

ETH Value Draws From On-Chain Activities

According to L2Beat, Ethereum layer-2 solutions have over $14.9 billion as total value locked (TVL), with the most prominent platforms, including Arbitrum One, OP Mainnet, Starknet, and Base, commanding billions and processing tens of thousands of transactions daily. In the past week, Adams observed that leading layer-2 rollups were the top 10 consumers of Ethereum block space.

Ethereum layer-2 TVL | Source: L2 Beat

Comparing Ethereum using traditional metrics like price-earnings (P/E) ratios that compare favorably to technology companies like Amazon and Zoom, Adams suggested that Ethereum’s upside is almost mathematically unavoidable this cycle.

The venture capitalist, based on the above factors, thinks Ethereum could likely be 10x, pushing the coin to over $22,000 per coin. Even so, the investor can’t precisely gauge how long the markets will “stay irrational,” grossly undervaluing the second most valuable coin.

Ethereum price trending higher on the daily chart | Source: ETHUSDT on Binance, TradingView

In response, Uniswap founder Hayden Adams agreed Ethereum fundamentals would fuel appreciation. Even so, the founder thinks Ethereum derives strength not from speculation attributes, as Ryan Sean Adams laid out. The Uniswap founder is confident that demand from active protocols launching on the mainnet and competing for scarce block space will directly pump prices.

Over 14,900 ETH burned in the last month | Source: Ultra Sound Money

According to Ultra Sound Money, Uniswap helps Ethereum burn the most coins. In the last month alone, Uniswap took over 14,900 ETH out of circulation, helping the network become more deflationary.

Read Entire Article
spot_img

Related Posts

Crypto Analyst Predicts 10X Move For Filecoin (FIL) To $70, But Can It Reach ATH?

Over the last day, Filecoin (FIL) has seemingly emerged from the shadows to stage a price recovery of over 10% This notable move has brought more attention to the altcoin, which had previously failed

Hong Kong issues regulatory standards for tokenized financial products

The Hong Kong Monetary Authority (HKMA) unveiled comprehensive regulatory standards on Feb 20 for the sale and distribution of tokenized financial products by authorized institutions The initiative

Ripple Can ‘Burn’ 40 Billion XRP Locked In Escrow, CTO Reveals How

The debate of whether or not to burn the more than 40 billion XRP held in escrow by Ripple has continued to wax stronger As it continues to gain widespread popularity, it has drawn the attention of

Crypto advocate John Deaton launches campaign to unseat Elizabeth Warren in US Senate

Pro-crypto advocate John Deaton has launched his official campaign to unseat Elizabeth Warren in the US Senate In a Feb 20 post on social media platform X (formerly Twitter), Deaton revealed that he

MetaMask and Blockaid partner to develop “privacy-preserving module” to enhance web3 security

MetaMask, a leading crypto wallet, has partnered with Web3 security firm Blockaid to fortify security measures for its users across various chains, including Ethereum, Linea, BNB Chain, Polygon,

Pyth Network Unveils Real-Time Bitcoin ETF Price Feeds, Bridging Defi and Traditional Finance

On Tuesday, Pyth Network announced the rollout of real-time price feeds for bitcoin exchange-traded funds (ETFs), enhancing the data’s availability to both decentralized finance (defi)
- Advertisement -spot_img