{"id":151777,"date":"2023-09-08T02:16:58","date_gmt":"2023-09-07T20:46:58","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=151777"},"modified":"2023-09-08T02:16:58","modified_gmt":"2023-09-07T20:46:58","slug":"4500000000000-asset-manager-says-ethereum-eth-is-currently-undervalued-heres-why-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/4500000000000-asset-manager-says-ethereum-eth-is-currently-undervalued-heres-why-crypto-news\/","title":{"rendered":"$4,500,000,000,000 Asset Manager Says Ethereum (ETH) Is Currently Undervalued \u2013 Here\u2019s Why – Crypto News"},"content":{"rendered":"

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The crypto-focused subsidiary of investing giant Fidelity Investments says Ethereum (ETH<\/a>) is currently trading at a discount.<\/p>\n

In a new report titled \u2018Ethereum Investment Thesis\u2019, Fidelity Digital Assets says<\/a> that at the current Ethereum supply of around 120 million and annualized network fees of over $6.8 billion, the modeled price of ETH when a discounted cash flow model is applied is around $2,090 \u2013 around 28% above the current price.<\/p>\n

Source: Fidelity Digital Assets<\/figcaption><\/figure>\n

The asset manager says that Ethereum\u2019s value is correlated to network activity and by extension the fees generated, a figure that Fidelity expects to grow by double digits over the next seven years and hit over $20 billion in 2030.<\/p>\n

\u201cThe value assigned to ether is more easily modeled following the network\u2019s shift to proof-of-stake. Demand for block space can be measured via transaction fees. These fees are both burned or passed on to validators, thereby accruing value for ether holders. <\/i><\/p>\n

As a result, fees and ether value accrual should be inherently related over the long term. An increased number of Ethereum use cases creates greater demand for block space, which leads to higher fees and greater value and utility in the form of yield rewarded to validators.\u201d<\/i><\/p>\n

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Source: Fidelity Digital Assets<\/figcaption><\/figure>\n

On the risks that could hamper the fees generated on the Ethereum network, Fidelity Digital Assets says,<\/p>\n

\u201cThe relationship between ether and the value it provides to network users may weaken if scaling technology erodes fee revenue unless volumes increase and offset this margin compression.\u201d<\/i><\/p>\n

Ethereum is trading at $1,630 at time of writing.<\/p>\n

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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.<\/h6>\n<\/div>\n

Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The crypto-focused subsidiary of investing giant Fidelity Investments says Ethereum (ETH) is currently trading at a discount. In a new report titled \u2018Ethereum Investment Thesis\u2019, Fidelity Digital Assets says that at the current Ethereum supply of around 120 million and annualized network fees of over $6.8 billion, the modeled price of ETH when a discounted […]<\/p>\n","protected":false},"author":2,"featured_media":151778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-151777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=151777"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151777\/revisions"}],"predecessor-version":[{"id":151780,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151777\/revisions\/151780"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/151778"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=151777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=151777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=151777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}