Ether should be 55% lower and is facing tough competition from solana and other blockchains, JPMorgan strategist says | Currency News | Financial and Business News

The cryptocurrency Ether runs on the Ethereum network.

Given Ruvic / Reuters

• Ether’s fair value is around $ 1,500 based on network activity, said a JPMorgan strategist.
• That’s about 55% less than Friday’s price of around $ 3,470 for the Ethereum token.
• Nikolaos Panigirtzoglou said Ethereum is facing growing smart contract competition from other blockchains.
• Check out Insider’s business page for more stories.

Ether’s fair value is around $ 1,500 based on network activity, said a global market strategist from JPMorgan. That’s about 55% less than Friday’s price of around $ 3,470 for the Ethereum token.

Nikolaos Panigirtzoglou told Insider that the Ethereum network is less attractive than the current price of Ether suggests as it faces growing competition from blockchains like Solana and Cardano.

Panigirtzoglou, who has become JPMorgan’s crypto expert, said he and his team had studied various measures of activity on the Ethereum network to determine a fair value for the token.

JPMorgan believes that a larger base of miners and users means greater adoption and makes the network more attractive to product developers.

“We look at the hashrate and the number of unique addresses to understand the value of Ethereum. We’re struggling to get above $ 1,500, ”he said.

“There’s a question mark here. The current price expresses an exponential increase in usage and traffic that may not materialize.”

Ether – the cryptocurrency that runs on the Ethereum blockchain – is up more than 850% against the dollar in the last year during a widespread crypto boom.

Continue reading: The founder of a gold-backed cryptocurrency explains why now is the perfect time for investors to buy stablecoins – and explains his prediction that inflation could get “even worse than it was in the 1970s”.

However, Panigirtzoglou recently told Insider that Ethereum’s main selling point – that developers can build decentralized apps and smart contracts on top of them – “can easily be replicated by other networks.”

“It’s not unique,” he said. “You are already seeing competition from Binance, competition from Solana. And there will be more in the future.” Panigirtzoglou also cited cardano, which was recently updated to allow the creation of smart contracts.

However, Jack O’Holleran, CEO of Ethereum development company Skale Labs, told Insider that Ethereum is likely to remain the dominant decentralized financial blockchain, especially given the upcoming network changes that should help make it bigger and faster.

“The vast majority of smart contract developers build in the Ethereum ecosystem,” said O’Holleran. “Although large partnerships are announced on other chains, we are still seeing the absolute majority of (developers) being drawn into the Ethereum vortex.”

Decentralized Finance, or DeFi, uses crypto technology to create financial products that do not require centralized authorities. For example, they could enable trading without clearing houses or “smart contracts” that automatically interest loans.

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