A strategist at JPMorgan stated that ether’s fair value is way lower than its current price. 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 the reasons argued for this assessment, is that Ethereum is not so unique anymore, and it is facing tough competition from other chains like Solana and Avalanche.
JPMorgan Strategist Thinks Ether Is Overvalued
Nikolaos Panigirtzoglou, Managing Director of JPMorgan, acknowledged that he thinks ether (ETH), the native asset of the Ethereum community, is grossly overvalued. Panigirtzoglou took several measures of network activity and tried to translate them into a number that represented the fair value of the asset. He and his workforce estimated ether’s truthful worth at $1,500, which is presently 55% lower than right this moment’s market value.
The JPMorgan strategist thinks the price has rallied as a result of the confidence the market has in the future developments of the project. He stated:
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 is a question mark here. The present value is expressing an exponential improve in utilization and site visitors which may not materialize.
Ethereum Killers Galore
Part of this analysis has its base in the idea that Ethereum’s proposal is not so unique anymore. Ethereum pioneered the idea and implementation of sensible contracts within the cryptocurrency market. But that feature is now shared by a slew of chains, dubbed “ethereum killers,” that are seeking to take a bite of Ethereum’s market share by offering the same traits. About this, Panigirtzoglou stressed:
It’s not distinctive. You’re already seeing competitors from Binance, competitors from Solana. And there are going to be more in the future.
Whereas these Ethereum community options have entered with some drive available in the market, it would show tough to beat Ethereum’s community results. Even with some heavy venture capital (VC) investment backing them up, most of the innovation is still happening on Ethereum, and it then spreads to other projects. That is the case of decentralized finance (defi) and non-fungible tokens (NFTs), options that first appeared on Ethereum after which have been ported to different chains.
This is what Jack O’Holleran, CEO of Skale Labs, told Insider. He stated:
Despite major partnerships being announced on other chains, we nonetheless see absolutely the majority of builders being pulled into the Ethereum vortex.
