The second-largest cryptocurrency globally, ETH (Ethereum), has significantly increased this week to $3000, beating Bitcoin yet again. The Ethereum price is currently hovering about $3,100; analysts believe they will see Ethereum price could increase even more by 2022.
Bloomberg Analyst Jamie Coutts believes that the Ethereum price could reach $6,100, based on the model of discounted cash flow. The analyst explains the Ethereum cryptocurrency is the benefits of a “unique blend of equity, commodity and monetary characteristics.”
Coutts is adamant regarding ‘The Merge’ between the execution layer and the consensus layer. It will let users put their money into Ethereum and earn an income, and an astounding 30% of Ethereum transaction costs will be paid to stakers.
The rising demand for Ethereum will likely result in greater fees and more payouts. According to its current performance, it is estimated that the Ethereum network is set to earn $12.7 billion of expenditures by 2022.
A different market expert Ryan Allis, who runs a hedge fund that invests in crypto quant, thinks it is likely that Ethereum market valuations total $832 billion, according to the discounted cash flow models. The analyst claims that Ethereum transaction fees in January 2022 exceeded $1.3 billion.
Allis adds that the revenue of Ethereum in February 2022 was US$715.4 million. Based on this analysis, the income for the year should be US$8.58 billion. According to the estimates, the annual staking payout is expected to be US$1.4 billion, and it would raise the total revenue per year by US$9.98 billion. Allis states that net profits are the same as the revenue, i.e. 100 per cent profits, as there are no costs related to distributed systems.
So, we can say we can conclude that Ethereum trades at a forward cost-to-earnings ratio of 36.6. It is quite appealing considering the large multiples in which growth stocks are trading. Considering a forward P/E ratio of 100, Ethereum values will increase to over $8,000.
Allis is also assuming that the annual growth rate of revenue of Ethereum which is 25% over the coming 20 years. It puts the value of Ethereum at $7,000.
Ethereum (ETH) Whale Addresses Supply:
The stakes of the most prominent 10 Ethereum whales continue to increase and have now climbed near the 5-year mark.
On-chain data provider Santiment noted:
Ethereum’s top 10 whale addresses contain 4.3 per cent greater total supply than they did a year ago. The 23.7 per cent of all the $Ethereum held by these wallets is extremely close to the 5-year highest levels were first surpassed in January.
Source: Google News Trend