The native token of Ethereum, Ether (ETH), is seen as undervalued by nine of the twelve commonly used valuation models, as per Ki Young Ju, a market analyst and CEO at CryptoQuant.

A composite assessment, averaging all twelve models, suggests ETH’s fair market value is roughly $4,836, indicating a potential gain of over 58% from its current trading value.

Each model in the study was evaluated based on reliability, using a three-tier scale, where three signifies the highest trust level. Notably, eight out of the twelve models received a reliability rating of two or higher. Ju pointed out that these models were designed by reputable experts from both academic and conventional finance sectors.

ETH Valuation Models 12 valuation models indicate that ETH is undervalued at present market prices above $3,000. Source: ETHval

The App Capital valuation model, which focuses on total on-chain assets—including stablecoins and NFTs—suggests a fair ETH value of $4,918, according to ETHval.

Incorporating Metcalfe’s Law, which posits that the value of a network correlates with the square of its user base, projects an ETH price around $9,484, marking the asset as over 211% undervalued under this model.

Further analysis using the Layer-2 (L2) framework, which assesses the total value locked (TVL) within Ethereum’s scaling network, estimates ETH at $4,633, indicating it is approximately 52% undervalued.

Composite ETH Fair Value ETH’s composite fair value analyzed over a year. Source: ETHval

The Ethereum community and analysts are engaged in ongoing discussions regarding the best approach to valuing this pioneering smart contract platform. Many argue that conventional models may fall short when applied to emerging digital assets and decentralized blockchain frameworks.

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One Valuation Model Points to Overvaluation

Conversely, the Revenue Yield valuation model suggests that at current prices exceeding $3,000, ETH is inflated by over 57%.

Revenue Yield Model ETH marked overvalued according to Revenue Yield model. Source: ETHval

According to ETHval, Revenue Yield is regarded as the most reliable model for determining ETH’s price effectively. The model estimates ETH’s correct value to be around $1,296, reflecting the Ethereum network’s declining revenue generation as fees drop and rival networks capture segments of its market.