Eight of these frameworks carry reliability ratings of at least two on a three-tier scale, with three being the highest.
Ethereum News
Nine out of 12 standard valuation frameworks indicate Ethereum is trading below fair value at current market prices, according to CryptoQuant CEO Ki Young Ju. The analysis arrives as Ethereum's native token holds near $3,034.
A composite calculation using all 12 models places Ethereum fair value at approximately $4,836, representing a potential 58% gain from present levels. Eight of these frameworks carry reliability ratings of at least two on a three-tier scale, with three being the highest. Ju noted that trusted experts from academia and traditional finance built these models.
The App Capital framework accounts for total on-chain assets including stablecoins, ERC-20 tokens, NFTs, real-world tokenized assets, and bridged assets. This model assigns Ethereum a fair value of $4,918, according to ETHval data.
Metcalfe's Law projects an Ethereum price of $9,484 by measuring network value through the square of real active users or node count. Under this framework, the asset appears 211% undervalued at current trading levels.
The layer-2 valuation approach considers total value locked across Ethereum's scaling network ecosystem. This methodology projects Ethereum at $4,633, suggesting roughly 52% undervaluation compared to spot prices.
Debate continues within the Ethereum community about proper valuation methods for smart contract platforms. Many analysts argue that traditional models fall short when applied to nascent digital assets and decentralized blockchain networks.
One framework contradicts the broader trend, however. The Revenue Yield model values Ethereum by dividing annual network revenue by staking yield, and this approach suggests current prices above $3,000 represent a 57% overvaluation.
ETHval criteria rank Revenue Yield as the most reliable model for pricing Ethereum accurately. This framework places fair value at approximately $1,296, highlighting declining revenue generation as fees hit record lows while competing networks capture market share.
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