{"id":181554,"date":"2023-09-19T23:39:11","date_gmt":"2023-09-19T23:39:11","guid":{"rendered":"https:\/\/precoinnews.com\/?p=181554"},"modified":"2023-09-19T23:39:11","modified_gmt":"2023-09-19T23:39:11","slug":"new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/","title":{"rendered":"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion"},"content":{"rendered":"<ul>\n<li>According to new on-chain research, Ether (ETH) is trading below its worth by a staggering 27%.<\/li>\n<li>The report hinges its analysis on user adoption levels of Ethereum\u2019s layer 2 networks.<\/li>\n<li>Layer 2 networks have ballooned in popularity with Optimism and Arbitrum probing new functionalities.<\/li>\n<\/ul>\n<p>A new report has placed Ethereum\u2019s network valuation north of $275 billion, relying on a modification of Metcalfe&#8217;s Law.<\/p>\n<p>RxR, a joint venture between Re7 Capital and Republic Crypto, has pegged ETH\u2019s fair valuation at $275 billion in its latest analysis. According to the report, the network is currently trading below fair value by 27% if certain key factors are considered holistically.<\/p>\n<p>The report made use of a modified Metcalfe-centric model to arrive at its conclusion, noting that existing models do not take the scaling dynamics into account. Traditional models place a premium on the number of active users on the network\u2019s mainnet, but RxR\u2019s models rely on data from Ethereum\u2019s layer 2 networks.<\/p>\n<p>Metcalfe\u2019s law states that the financial value of a network is directly proportional to the square of the number of connected users, but extending the model to layer 2 activities yields new results.<\/p>\n<p><em>&#8220;Ethereum\u2019s network valuation tracks the updated ML index better when the active user base of Ethereum\u2019s scaling networks is factored into the model than when omitted,\u201d<\/em> said Lewis Harland, an RxR analyst.<\/p>\n<p>In the report, the research analyst noted that including the L2 activity proved more reliable for long-term forecasts. The analysts pointed out that ignoring off-chain and L2 activities may paint a grim picture that the Ethereum network may be overvalued.<\/p>\n<p>At the moment, ETH trades at $1,655 with a total market capitalization of $199 billion, showing glimpses of a rally on the horizon. RxR\u2019s blended model suggests that contrary to popular opinion, the market is yet to \u201cprice in\u201d Ethereum\u2019s network adoption levels.<\/p>\n<p><em>\u201cUser growth on Ethereum as an application platform is set to outpace simple value-transfer networks over time implying higher relative valuations based on Metcalfe\u2019s law,\u201d<\/em> said Harland.<\/p>\n<h2><strong>Ethereum\u2019s thriving L2 ecosystem<\/strong><\/h2>\n<p>Ethereum\u2019s L2 space has been a beehive of activity, with several projects experimenting with novel ways around the network\u2019s scaling issues. Arbitrum and Optimism are pushing the frontiers of Ethereum\u2019s scaling with their novel offerings, with Coinbase\u2019s BASE recording sky-high adoption levels.<\/p>\n<p>With over 30 L2 networks in play, aggregate total value locked (TVL) has surged to $10 billion given the reliance on rollups and other novel scaling solutions. Experts have hailed the spike in L2 activity as preventing single points of failure and playing a key role in reducing congestion.<\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to new on-chain research, Ether (ETH)<\/p>\n","protected":false},"author":3,"featured_media":181553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"According to new on-chain research, Ether (ETH)\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-19T23:39:11+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2023\/09\/New-Report-Suggests-Ethereum-Is-Trading-Well-Below-Its-Market-Value-Citing-A-Valuation-Of-275-Billion.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\",\"url\":\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\",\"name\":\"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2023-09-19T23:39:11+00:00\",\"dateModified\":\"2023-09-19T23:39:11+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ethereum\",\"item\":\"https:\/\/precoinnews.com\/category\/ethereum\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/","og_locale":"en_US","og_type":"article","og_title":"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News","og_description":"According to new on-chain research, Ether (ETH)","og_url":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/","og_site_name":"Pre Coin News","article_published_time":"2023-09-19T23:39:11+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2023\/09\/New-Report-Suggests-Ethereum-Is-Trading-Well-Below-Its-Market-Value-Citing-A-Valuation-Of-275-Billion.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/","url":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/","name":"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2023-09-19T23:39:11+00:00","dateModified":"2023-09-19T23:39:11+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/ethereum\/new-report-suggests-ethereum-is-trading-well-below-its-market-value-citing-a-valuation-of-275-billion\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Ethereum","item":"https:\/\/precoinnews.com\/category\/ethereum\/"},{"@type":"ListItem","position":3,"name":"New Report Suggests Ethereum Is Trading Well Below Its Market Value, Citing A Valuation Of $275 Billion"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/181554"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=181554"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/181554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/181553"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=181554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=181554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=181554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}