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Hashed CEO Simon Kim has launched a new dashboard designed to assess Ethereum’s intrinsic value using 12 different valuation models, combining traditional financial tools with metrics unique to the cryptocurrency world.
These models include methodologies such as Discounted Cash Flow (DCF), Price to Sales (P/S), Earnings Yield and Real Economics, as well as tools related to technology architecture such as Total Value Locked (TVL), Market Cap Locked (MC/TVL), Metcalfe’s Law, Storage Scarcity, Secondary Systems, Commitment Index, Applied Capital and Settlement Levels.
Is Ethereum undervalued?
Data collected by Kim shows that Ethereum’s combined fair value is approximately $4,869, while its actual market price is just under $3,000.
This means that Ethereum is undervalued by more than 62% according to these models.
The individual models reveal clear differences in value estimates.
According to Metcalfe’s Law, which relates the value of a network to the square of its number of users, Ethereum should be valued at $9,869, reflecting the intensity of the network’s growth and rising influence.
The DCF collection model ranks second with a fair value of US$8,995, in which collection rewards are regarded as continuous cash flow, combining traditional financial principles with blockchain return mechanisms.
Models like Validator Economics suggest fair value is around $6,984, while settlement layers and committed premiums push the price to over $5,000.
When was Ethereum overvalued?
Out of 12 methods, only two indicators suggest that the current Ethereum price may be higher than its fair value.
The first is price-to-sales (P/S), a model applied to cryptocurrencies where market capitalization is compared to annual transaction fee revenue; this metric suggests that Ethereum’s fair value should be below $930.
The second metric is the Earnings Yield, which treats Ethereum as a bond based on mortgage returns, with a fair price estimate of around $1,433.
While most models show Ethereum to be undervalued, more conservative metrics confirm that Ethereum is likely overvalued in the context of current network fees and staking returns.
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