A JPMorgan strategist said the fair value of Ethereum (ETH) is approximately $1,500 based on network activity metrics. This is roughly 55 percent lower than the current $3,500 price for the Ethereum token. Strategist Nikolaos Panigirtzoglou said that Ethereum is facing increasing smart contract competition from other blockchains. Here are the details…
JPM analyst: The real value of Ethereum (ETH) is $ 1,500!
Nikolaos Panigirtzoglou said that as it faces increasing competition from blockchains like Solana and Cardano, the Ethereum network is less attractive than the current ETH price suggests. Panigirtzoglou, who has become JPMorgan’s crypto expert, said he and his team are examining various metrics of activity on the ETH network to try to find a fair value for the token.
JPMorgan believes that a larger miner and user base means greater adoption and makes the network more attractive to product developers. Panigirtzoglou adds the following statements:
To try to understand the value of Ethereum, we look at the number of hashrate and unique addresses. We’re struggling to get the value above $1,500. There is a question mark here. The current price represents an exponential increase in usage and traffic that may not happen.
“ETH, not unique”
ETH, the cryptocurrency running on the Ethereum blockchain, has gained more than 850 percent against the dollar last year amid a widespread crypto boom. Still, Panigirtzoglou recently said that Ethereum’s key selling point – the ability for developers to build decentralized applications and smart contracts on top of the network – can be “easily copied by other networks”.
“It’s not unique. You already see the competition from Binance, the competition from Solana. And there will be more in the future,” said Panigirtzoglou, noting that Cardano was recently updated to allow the creation of smart contracts. Cryptocoin. com
As we reported , Cardano received the Alonzo update to the mainnet last week.
However, Jack O’Holleran, CEO of Ethereum development company Skale Labs, said that Ethereum will continue to be the dominant DeFi chain, especially given the network changes that will help it become bigger and faster. “The vast majority of smart contract developers build on the Ethereum ecosystem. Despite major partnerships announced on other chains, we still see the majority of [developers] getting pulled into the Ethereum vortex if we mudol.”