Home / Business / Cryptocurrency Ethereum is now overvalued.

Cryptocurrency Ethereum is now overvalued.

According to a strategist at the investment firm JPMorgen, this is the case. He claims that the fair value of Ethereum is lower than the current market price, and that the coin is therefore overvalued.

This has been looked into by the bank’s strategist. He determined the worth of ether at $1,500 based on a set of assessments he took based on network activity. That is a 55 percent discount from the current market price. One of the reasons for this classification is that Ethereum is no longer a one-of-a-kind cryptocurrency and is facing severe competition from other blockchains such as Solana and Avalanche, which are ranked higher.

Ethereum, according to a JPMorgan strategist, is overvalued.
The strategist’s name is Nikolaos Panigirtzoglou, and he is from Greece. And he’s not just any individual; he’s the Managing Director of JPMorgan Chase & Company. He indicated that he believes Ethereum (ETH), the native asset of the Ethereum network, is massively overvalued at the time of this writing. Panigirtzoglou looked at a number of different metrics of network activity and attempted to convert them into a number that indicated the fair market worth of the asset in question. He and his colleagues believe that the fair market value of Ethereum is $1,500, which is now 55 percent lower than the current market price of the cryptocurrency. According to the strategist, the price has grown as a result of the market’s confidence in the project’s future development prospects. So much feeling. He asserted the following:

The hashrate and the number of unique addresses are being examined in order to determine the value of the Ethereum cryptocurrency. We’re having difficulty getting above $1,500. ‘The current price reflects an exponential increase in usage and traffic that may or may not take place in the future.’

There are numerous Ethereum murderers.
These days, Ethereum has a plethora of competitors. Consequently, the coin is no longer as distinctive, and perhaps these “killers” are preferable. Ethereum was the first cryptocurrency to introduce the concept of smart contracts and to put them into action on the cryptocurrency market. In recent months, however, a large number other chains have adopted that feature as well, in an attempt to capture some of Ethereum’s market share by offering similar features. Panigirtzoglou emphasised the following point:

It is not a one-of-a-kind situation. You can already witness competition from Binance and competition from Solana in the market place. And there will be more to come in the future. While these Ethereum network alternatives have made a significant impact on the market, it can be difficult to compete with Ethereum’s network effects. It does, however, have an impact on the value of the currency.

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