Key Insights:
Bankless co-founder Ryan Sean Adams sees Ethereum's fair market valuation at $10,000.
The entrepreneur and crypto market experts see Ethereum as highly undervalued in the current markets.
Ethereum too has shown its bullishness with the formation of inverse head and shoulder pattern.
Fundamentally, Ethereum is also supported by high network usage and increased demand from its ETFs.
Bankless co-founder Ryan Sean Adams has shared on X that Ethereum's fair market value in the current market should be around $10,000. He added that at present Ethereum was the most undervalued asset.
Upon being asked by another X user how he values Ethereum at $10,000 per ETH and how anyone values a blockchain, Ryan answered that it was because Ethereum (ETH) as a crypto and blockchain is a "Triple Point Assset".
A Triple Point Asset is one which satisfies all the three financial needs of the user:
Store of Value
Is Consumable
Has Capital Appreciation
Store of Value means an asset that does not decay on its own over time. Money was one of the first store of value. Other assets that acts as store of value are Gold, Silver, Bonds, Fiat currency, Cryptocurrency and some others.
Ethereum is also a consumable assets which is visible when we pay it for gas fees.
The third asset attribute Etheruem has is capital appreciation. Any investor that had invested in Ethereum two years ago would have reaped 200% profits in may 2024 when Ethereum peaked at $4200. These gains are called capital gains and the increase in price is called capital appreciation.
Inverse Head and Shoulder in Ethereum 1D Charts
Etheruem has seen the completion of inverse head and shoulder pattern on its daily charts which indicate that its price may reach up to $2800 to $3000 within the next couple of weeks. If this happens, Etheruem could shed its bearishness and resume its bull rally.
There are several factors that can help Ethereum realize its price targets in the near future. Among them, a few are listed below.
Ethereum ETF Inflows
In the last seven days, Ethereum ETFs have seen four days with major inflows, one day of zero gains or losses and minor outflows in the other two. The net inflows were at $86.9 million.
Among them BlackRock's Etheruem ETF was the largest gainer with $67.8 million in net gains. As usual, Grayscale's ETHE ETF was the largest loser with a net outflow of $39.7 million. However, the mini ETF by Grayscale saw a net inflow of $5.1 million.
Also, the outflows in Grayscale's ETHE ETF had slowed down as compared to the past.
The Dencun Upgrade introduced blobs as the new way for processing bulk transactions from Layer-2 and other high-scale transaction generators.
Since the upgrade, this month in October, Ethereum achieved a optimum blob utilization which means the network activity has increased several folds. This is because the demand for blobs would only be higher if there are more transactions to fill in them.
Another critical upgrade that could soon boost Ethereum's network speed by 50% was proposed by Ilyriad Games co-founder and Nethermind contributor Ben Adams.
Ben had proposed to decrease block slot time from current 12 seconds to 8 seconds, thereby increasing block creation speed by 50%. This would in turn increase the speed by which transactions happen on the blockchain.
Further, with an increased block speed, Ethereum would see better block utilization.
However, to execute this Etheruem validators need to upgrade their current hardware.
Vitalik Buterin proposed several more amendments to increase Ethereum's user experience. He proposed that Layer-2 chains need to have better state proofs and improve their interoperability.
State proof refers to the periodical proofs that Layer-2s submit on the Etheruem blockchain for the finalization of transactions. These proofs ensure that Layer-2s are working as intended and have not manipulated their state logs.
Talking about interoperability, we see that despite being built on the same Layer-1, i.e., Ethereum, layer-2s currently do not natively transact with each other, rather they rely on bridges and DeFi protocols.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.