- Ethereum community members have had varying views on the value and roadmap of ETH.
- Mixed signals from Ethereum leadership could hit ETH sentiment.
that Ethereum (ETH) The leadership has made headlines with its long-term roadmap and view of ETH’s value growth. One of the Ethereum community members, Justin Drake, suggested that ETH is like Nvidia and Apple, and could attract trillions of dollars in value based on fees.
drake stated,
“Ethereum is like a very large company like Nvidia, Apple. We can raise trillions of dollars of value based purely on flow (fees). And you know that for Ethereum to become money, collateral, decentralized stablecoin, there’s a whole other topic besides the trillions of dollars of fundamental value.”
Conflicting views on the value of ETH
However, some builders and founders in the Ethereum ecosystem disagree with this perceived leadership view. Sam Kazemian, founder of DeFi protocol Frax Finance, was one of the critics.
Kazemian believes that comparing ETH to Nvidia or Apple will limit the growth potential of this altcoin compared to Bitcoin. He argues that this valuation will not be beneficial for this altcoin asset.
“ETH is currently generating $1 billion in revenue per year. If you multiply that revenue by 385x to match Apple’s revenue, ETH would be valued at 11x, matching Apple’s valuation. Does this look like a roadmap to victory for ETH?”
He believed that this was the wrong way for management to measure the value of ETH and that it might not be able to compete with BTC.
“Does Ethereum have a chance of catching up or surpassing BTC as a major cryptocurrency with ‘fundamental value’ measured by cash flow generated from fees?”
He added:
“Apple has $385 billion in annual revenue and is worth $3.3 trillion. BTC has zero annual revenue and will never have $1 in revenue. It is already worth $1.1 trillion.”
Like most protocol founders, Kazemian argues that ETH’s primary value should be based on its ‘store of value’ (SoV) and DeFi ecosystem.
ETH leadership said:
Unlike BTC’s “digital gold” tagline, ETH has struggled to have a compelling and unified pitch deck for potential investors. Leaders have used terms like “programmable money” and “Digital Oil” did not have the expected appeal.
Ethereum’s DeFi vision also showed different visions among leaders. For example, Vitalik Buterin suspicious Pure DeFi is the only catalyst for crypto growth.
This is in contrast to other community members, such as Kazemian and Uniswap’s Hayden Adams, who believe DeFi is important for ETH’s value growth.
According to Coinbase analysts, this is different The vision for DeFi on Ethereum has made it difficult for new investors to understand the asset, and market sentiment has also been depressed.
In addition, ETH’s fees are I refused Since Dencun was upgraded in March, cheap blobs have increased significantly, encouraging users to migrate to L2.
Source: Galaxy Research
This too divided As ETH inflation issues worsen after the Dencun upgrade, there are mixed opinions in the community on whether to adjust blob fees to allow ETH L1 to gain value in L2.
The community issues mentioned above have further shaken investor sentiment towards ETH.
Nevertheless, ETH was lagging behind BTC. The underperformance was evidenced by the yearly low of the ETH/BTC ratio, which tracks the price performance of altcoins against BTC. The value of ETH Dropped it It has increased by 44% compared to BTC over the past two years.