In a recent post on X, cryptocurrency investor Ryan Sean Adams expressed his amusement at Ethereum (ETH) trading at $2.2K, deeming it ‘hilarious.’ Adams, however, asserted that Ethereum boasts strong fundamentals that could lead to a potential value of $22K.
While ETH Price Is Deemed ‘Hilarious,’ a Prominent Whale Seizes the Opportunity to Cash Out
One key fundamental supporting ETH’s intrinsic value, according to Adams, is Ethereum’s annualized profits of $2.7 billion, making it the only profitable chain with a P/E ratio of 98. Notably, this ratio surpasses that of tech giant Amazon, which stands at 75, and closely follows Zoom with a ratio of 153.
In addition to the impressive P/E ratio, Ethereum is experiencing a shift with entire chains, referred to as Layer-2s, emerging as new buyers of blockspace in this cycle. Adams highlighted that five Layer-2 networks ranked among the top 10 consumers of Ethereum blockspace in the past week.
Another noteworthy fundamental is Ethereum’s transition to a deflationary model in this cycle, contrasting with its 3-4% annual inflation in the previous cycle. Validators, known as bond holders, are now earning 5.3% per year, a notable difference from other chains offering nominal returns. Consequently, Adams views ETH as akin to an internet bond.
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