A JPMorgan strategist stated that the fair value of ether is well below its current price. According to a series of measurements based on network activity, he calculated the value of Ether at $ 1,500, 55% lower than the market price. One of the reasons for this assessment is that Ethereum is no longer that unique and faces stiff competition from other chains such as Solana and Avalanche.
JPMorgan strategist thinks Ether is overvalued
Nikolaos Panigirtzoglou, Managing Director of JPMorgan, stated that he believes Ether (ETH), the native asset of the Ethereum network, is grossly overvalued. Panigirtzoglou took several metrics of network activity and tried to convert them into a number that represents the fair value of the asset. He and his team estimated the fair value of Ether at $ 1,500, which is currently 55% below today’s market price.
JPMorgan’s strategist believes the price has risen due to the market’s confidence in the future development of the project. He stated:
We look at the hashrate and the number of unique addresses to understand the value of Ethereum. We are struggling to get above $ 1,500. There is a question mark here. Current price expresses an exponential increase in usage and traffic that may not materialize.
Ethereum killers galore
Part of that analysis is based on the idea that Ethereum’s proposal is no longer that unique. Ethereum was a pioneer in the design and implementation of smart contracts in the cryptocurrency market. But that function is now shared by a number of chains called “Ethereum killers” who are trying to crack Ethereum’s market share by offering the same features. Panigirtzoglou emphasized:
It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there will be even more in the future.
While these Ethereum network alternatives have hit the market with some force, beating Ethereum’s network effects could prove difficult. Even with some heavy venture capital (VC) investments, most of the innovation still takes place on Ethereum and then spreads to other projects. This is the case with decentralized finance (defi) and non-fungible tokens (NFTs), features that first appeared on Ethereum and then ported to other chains.
That’s what Jack O’Holleran, CEO of Skale Labs, told Insider. He stated:
Despite the announcement of important partnerships on other chains, we are still seeing the absolute majority of developers being drawn into the Ethereum vortex.
What do you think of JPMorgan’s estimated fair price for ether? Let us know what you think about this review in the comments section below.
Tags in this story
$ 1500, AVAX, Ether, Ethereum, Ethereum Killer, Ethereum Killer, Fair Value, jpmorgan, JPMorgan Ethereum, Nikolaos Panigirtzoglou, Solana
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source https://www.bisayanews.com/2021/09/20/jpmorgan-strategist-estimates-ethers-fair-value-at-1500-amid-competition-from-ethereum-killers-bitcoin-news/
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