Key Insights:
Ethereum has been grossly underperforming the markets since last few months.
Experts have called Ethereum grossly undervalued with fair valuations at $10k.
This makes gives us an opportunity to accumulate ETH while the price is still in the undervalued zone.
Etheruem has slowed down and failed to cross beyond $3000 despite Bitcoin touching all-time highs. At press time ETH had gained 1.8% over the entire month despite Bitcoin gaining 12% in the same time frame.
Ethereum's Price At Press Time
Bitcoin recently touched $73.5k and remained just 0.33% shy from making a new all-time high.
Bitcoin Gains 12% in a Month
The euphoria in the cryptocurrency was primarily driven by institutional interest in it. Lately, Bitcoin ETFs and Whales have been buying in record numbers. Bitcoin ETFs hold $52 billion in Bitcoins while whales hold around $48 billion in Bitcoins. Both whales and ETF holdings are at record highs.
The surge in Bitcoin accumulation by whales and ETFs were likely driven by the US Fed rate cut which pumped liquidity in the crypto markets after 4 years. The second factor that supports this euphoric accumulation is the likelihood of Donald Trump being the US President once again ushering a period of pro-crypto regulations.
ETH has been held down due to several reasons, most of which are temporary but highly impacting.
Firstly, the Ethereum ETFs have been grossly underperforming. At a time when Bitcoin ETFs have seen inflows of $500 million per day, Ethereum ETFs on the other hands barely cross $10 million daily inflows.
Ethereum ETF Last Week Inflow Data
Secondly, the focus of the market is on Bitcoin which enjoys high institutional interest and is yet to gauge the value of Ethereum.
Thirdly, Ethereum has sold way too much crypto in recent times and this includes Vitalik Buterin. Rather than making an economic impact, this had made more of a psychological impact.
Ethereum's value and role in the crypto markets are irreplaceable. The blockchain and its EVM not only power $130 billion worth of DeFi assets but also provide a virtual running environment to over 50 blockchains, including the BNB Chain.
Further, the total combined market cap of ERC-20 coins stands at $365 billion, with a lion's share coming from stablecoins. These cryptocurrencies need Ethereum to function daily, and together, they constitute a trading volume of $2 trillion per day.
Next, when we look at Ethereum's future, we see two major upgrades. The first is increased decentralization with the Verge series of upgrades, which will enable even laptops to run an Ethereum node with just 1 ETH staked. The second is the Surge series of upgrades, which would virtually eliminate Ethereum gas fees. Both these upgrades will transform Ethereum, making it much more desirable than any other blockchain.
Finally, Ethereum's security is unparalleled. This is because of the presence of 1 million plus validators, who ensure that every transaction on the blockchain is vetted through an arduous process that leaves no stone unturned.
All of these fundamental aspects make Ethereum irreplaceable and truly undervalued at $2500. Bankless co-founder Ryan Sean Adams also shares this view, thinking the fair value of Ethereum at current markets is around $10,000.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but 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.