Ether is overvalued and its fair price is 55% lower than its current price, says a strategist at JPMorgan. The strategist calculated this value by the network activity of Ethereum. The strategist added that Solana and Avalanche are providing tough competition to Ether.
Ether is overvalued:
The 2nd largest coin of the crypto market and native asset of Ethereum Blockchain, Ether is overvalued, according to the Managing Director of JPMorgan, Nikolaos Panigirtzoglou. He added that the current price of Ether is due to the trust of the market in the future development of Ethereum. He said:
We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We’re struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialize.
The team of JPMorgan and Nikolaos used a set of measurements based on the Network activity and calculated that the fair price of Ether is 55% lower, at $1500 than its current value in the market.
The partial reason for this price estimation is the idea that Ethereum is not unique anymore. Ethereum started the concept of smart contracts in the Blockchain industry, but that concept is not unique anymore because it’s shared by many firms mostly referred to as “Ethereum killers”.
These firms like Solana, Avalanche, and Binance are offering the same feature as Ethereum. He further explained:
It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.
In my opinion, A lot of new development is happening on Ethereum and it is nearly impossible to replace Ethereum in the market. For more content please click here.