Ethereum retaining prices around $2,200 presents a “hilarious” undervaluation given its strengthened profitability, adoption, and investment merits, argued crypto thought leader Ryan Sean Adams. He contends ETH remains early in its bull cycle.
As co-founder of the firm Bankless, Adams highlights Ethereum’s implausible P/E ratio near 100 based on $2.7 billion in annualized revenue, dwarfing ratios for profitable giants like Amazon. No other chain produces income; meanwhile, ETH turns deflationary this cycle via burning.
Additional tailwinds come from layer-2 platforms ramping usage as heavy chain consumers. Validators also now earn real 5%+ yields on ETH bonds, while an ETF could unlock trillion-scale inflows from institutions legally barred from direct crypto exposure.
Adams suggests these developments make Ethereum a self-fulfilling digital gold and triple-A-grade asset, even ignoring additional progress on development, scalability, and mergers. Yet prices lag compared to legacy benchmarks given bearish macro conditions.
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Still, with fundamentals exponentially outpacing valuation, Adams contends, “Ethereum hasn’t had its bull market run yet.” He concludes that extreme fear won’t persist indefinitely against strengthening network credentials and unavoidable gravity. While timelines are unknown, ETH sitting at $2,200 seems like an unsustainable anomaly bound for correction absent external crises.
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