Simon Kim, the CEO of Hashed, recently introduced an innovative system designed to assess the intrinsic value of Ethereum (ETH). This initiative aims to provide a more reliable valuation than traditional price speculation, which often clouds the market.
Kim launched his intrinsic value dashboard on social media, posing the critical question, “How much is ETH actually worth?” His approach utilizes a combination of ten distinct valuation methodologies, integrating both classical financial models and metrics tailored specifically for the cryptocurrency space.
The valuation methods employed include traditional finance tools such as discounted cash flow (DCF), price-to-sales ratios, and revenue yield, alongside crypto-centric models like total value locked (TVL) multipliers, market cap to TVL ratios, and Metcalfe”s Law. Other metrics considered include staking rarity, Layer 2 ecosystem analysis, loyalty bonuses, and execution capital.
According to Kim”s findings, Ethereum is currently priced at $3,037.5. However, the average fair value calculated using his ten models stands at $4,574, indicating that ETH is approximately 50.6% undervalued in the current market.
At the time of writing, Ethereum trades at $3,037.5, reflecting a slight increase of 0.4% over the last 24 hours. The cryptocurrency boasts a total market capitalization of $366.5 billion and a trading volume of $854.1 million. Notably, ETH remains 37.7% below its all-time high of $4,946.1.
This simulation and valuation approach comes at a time when the market is keenly exploring more robust methods for assessing digital assets, particularly in the face of fluctuating prices and investor speculation.
