A JPMorgan market strategist says the emergence of competitors dubbed as “Ethereum killers” is threatening the dominance of ETH in the smart contract space.
Nikolaos Panigirtzoglou, a cross-asset research analyst at the banking giant, reportedly tells Business Insider that ETH’s “fair value” sits around $1,500. ETH is trading at $3,032.71 at time of writing, according to CoinGecko.
Panigirtzoglou’s ETH valuation represents a potential downside of over 50% for the leading smart contract platform.
Panigirtzoglou says his team bases the fair value estimate on activity metrics like the network’s base of miners and users.
Explains the analyst,
“We look at the hashrate and the number of unique addresses to try to understand the value for Ethereum. We’re struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialize.”
Panigirtzoglou says competition from other networks like Cardano (ADA), Solana (SOL) and Binance Chain (BNB) makes Ethereum less attractive.
“It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.”
Ethereum’s dominance currently stands at 17.89% of the total crypto market, which is roughly identical to the level it was at 30 days ago, according to CoinGecko. Bitcoin’s (BTC) dominance currently sits at 40.65%.
Less than two months ago, JPMorgan reportedly began allowing its wealth management clients to invest in various crypto funds, including the Ethereum Trust, Ethereum Classic products, Grayscale Bitcoin Trust, Bitcoin Cash Trust, and Osprey Funds’ Bitcoin Trust.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/tunnelmotions