Ethereum is worth $6,128, or 180 percent of its current price, as per Bloomberg Intelligence and the cash-flow model. Aside from that, according to MarketWatch, the network’s impending major update, which will switch from the “outdated” PoW standard to PoS, would turn Ether into an equity-like instrument.
The impending “Merge” update is critical for Ethereum since it will modify the process of correct project valuation by calculating the network’s worth based on profit generation rather than mined ETH.
According to the study, the new valuation approach will bring classic financial ratios to Ethereum analysis, such as P/E multipliers. The network fees will generate income for the company, while constant burning will serve as a buyback.
Following the expansion of the DeFi and NFT sectors, the network’s transaction fees soared to $9.8 billion in 2021, a 16-fold increase over the previous year’s numbers. For a variety of NFT and DeFi initiatives, Ethereum became the first and largest network. With $123 billion in smart contracts, Ethereum currently has the largest TVL of all the networks presented.
Experts predict that Ethereum will earn even more fees in 2022, with a target of roughly $12 billion by the end of the year, up 30% from 2021.
According to three distinct cash-flow models, the true value of Ether remains at around $6,128; $5,539; and $9,328, respectively, based on the aforementioned facts. The total cost of those three models is $6,998.
Per CoinMarketCap, ETH has a 24-hour trading volume of $22,938,340,000, the current Ethereum price is $3,233.00. In the previous 24 hours, Ethereum has lost 6.82 percent of its value. With a live market cap of $388,829,637,159, ETH ranks no. 2. The maximum supply is not known, however, it has a circulating supply of 120,268,896 ETH tokens.
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