JPMorgan Chase analysts argue that the price of Ethereum (ETH) is too high, based on metrics such as network activity and the number of unique addresses. Analysts of the giant investment bank argue that the “real” price of Ethereum should be $ 1,000. This indicates a level 70% lower than its current price.
JPMorgan analysts: Ethereum should actually be traded at $ 1,000
Analysts believe ETH is trading at $ 1,000. According to analysts, this “wrong” fair value is due to increased corporate investments and network improvements. They point out that these factors led to a price increase, but the current price does not reflect actual network usage. Analysts led by Nikolaos Panigirtzoglou said the network activity and number of active addresses are not proportional to ETH prices. The current price of Ethereum is just over $ 3,900, slightly lower than the May 10th high of about $ 4,200.
Having reached an all-time high, ETH has become more valuable than Visa and JPMorgan. It is worth remembering that crypto prices rarely work on fixed rules. The activity of ETH may be lower than desired, but it is unquestionable that the ecosystem is working as usual. While many in the crypto community seem quite optimistic about the direction the network is heading, there are many new competitors that are faster and cheaper. Binance Smart Chain and Fantom, for example, are two major competitors against ETH.
Is the ETH excitement actually justified?
But the main uses and potential in Ethereum seem to come from niches such as decentralized finance (DeFi) and non-fungible tokens (NFT). Both were incredibly popular over the past year. DeFi allowed users to make the most of their assets with its borrowing and borrowing features. Meanwhile, NFTs became popular among major brands and companies. Nike, Reebok, various celebrities released NFT. In fact, NFT may be the area with the most explosion for mainstream users, by many.