Ethereum At $2,200 Is “Hilarious”; Is A 10X Incoming?

Crypto investor Ryan Sean Adams argued on December 4 that Ethereum’s (ETH) current valuation of around $2,200 is almost “hilarious” given the strengthening on-chain activity and the blockchain’s role in the sphere. Venture Capitalist: Here’s Why Ethereum Is Grossly Undervalued Adams cited data like the first smart contract platform generating billions annually in “gas” fees, transitioning to becoming deflationary after merging in September 2021, and the over one million validators staking earning over 5% as rewards. Moreover, the venture capitalist pointed out the potential of the United States Securities and Exchange Commission (SEC) approving spot Ethereum ETFs in the long run. For now, BlackRock and Fidelity, two of the world’s most prominent traditional finance players, have applied to issue these derivative products. Though the SEC has yet to approve any spot crypto ETFs, the agency will authorize one or multiple, likely in early Q1 2024. Related Reading: Warning Signals Flash As Bitcoin Surges: Expert Spotlights Potential $25,000 Liquidity Sweep Overall, the crypto market expects any spot ETF, including that of Ethereum, to attract billions in institutional capital. Beyond external factors like the SEC and ETFs talk, Adams also pointed out the rising demand for mainnet block space from the multiple layer-2 solutions running off-chain rollups parallel to Ethereum. ETH Value Draws From On-Chain Activities According to L2Beat, Ethereum layer-2 solutions have over $14.9 billion as total value locked (TVL), with the most prominent platforms, including Arbitrum One, OP Mainnet, Starknet, and Base, commanding billions and processing tens of thousands of transactions daily. In the past week, Adams observed that leading layer-2 rollups were the top 10 consumers of Ethereum block space. Comparing Ethereum using traditional metrics like price-earnings (P/E) ratios that compare favorably to technology companies like Amazon and Zoom, Adams suggested that Ethereum’s upside is almost mathematically unavoidable this cycle. Related Reading: Shiba Inu Burn Rate Surges With Over 8 Billion SHIB Burned, Here’s The Trigger The venture capitalist, based on the above factors, thinks Ethereum could likely be 10x, pushing the coin to over $22,000 per coin. Even so, the investor can’t precisely gauge how long the markets will “stay irrational,” grossly undervaluing the second most valuable coin. In response, Uniswap founder Hayden Adams agreed Ethereum fundamentals would fuel appreciation. Even so, the founder thinks Ethereum derives strength not from speculation attributes, as Ryan Sean Adams laid out. The Uniswap founder is confident that demand from active protocols launching on the mainnet and competing for scarce block space will directly pump prices. According to Ultra Sound Money, Uniswap helps Ethereum burn the most coins. In the last month alone, Uniswap took over 14,900 ETH out of circulation, helping the network become more deflationary. Feature image from Canva, chart from TradingView