Bitcoin (BTC) and altcoins experienced major declines in October and November, with Ethereum (ETH) undoubtedly being one of them.
While Ethereum broke its record in August and reached a new ATH, it subsequently fell below $2,700.
While Ethereum is currently trading above $3,000, the Hashed CEO stated that Ethereum is approximately 55% below its fair value.
Simon Seojoon Kim, CEO of South Korean blockchain investment firm Hashed, stated that according to his latest analysis, the fair value of Ethereum should be $4,747.
This means ETH is currently undervalued by around 55%.
Kim explained that his company has created a dashboard that integrates eight models to assess the intrinsic value of Ethereum.
It was stated that the dashboard is designed to calculate the intrinsic value of Ethereum by combining various traditional and on-chain indicators and signal a change in the market analysis trend.
According to the Ethereum Valuation Dashboard, the models built include analysis methods such as a Discounted Cash Flow (DCF) analysis based on staking returns, a 25x Price-to-Earnings (PER) ratio, Total Value Locked (TVL) multipliers, staking scarcity, the TVL to market capitalization ratio, and Metcalfe’s law.
ETH achieved a peak valuation of $9,583.6, according to Metcalfe’s Law analysis, which showed that Ethereum was undervalued by 217.1%.
The DCF model found Etheruem’s fair value to be $9,067.8, which represents a 200% decrease in value.
However, the PER model showed that Ethereum should be at $899.2 and is overvalued by 70.2%, while the Income Yield model showed that it should be at $1,438.8 and is overvalued by 52.4%.
Consequently, based on this chart, Kim concluded that Ethereum is significantly undervalued at its current price, with a combined fair value of $4,747.
*This is not investment advice.
