Hashed CEO Simon Kim announced the development of a new system designed to calculate the intrinsic value of Ethereum (ETH).
Kim introduced his intrinsic value dashboard on social media, stating, "How much is ETH actually worth? The crypto industry deserves better than pure price speculation."
Methodology Behind the Valuation System
Kim's dashboard employs a comprehensive approach, utilizing a total of 10 distinct valuation methodologies. This system combines traditional finance models with crypto-specific metrics to determine Ethereum's fair value. Among the classic finance tools considered are Discounted Cash Flow (DCF), price-to-sales ratio, and revenue yield. Additionally, crypto-native models such as TVL multiplier, MC/TVL, Metcalfe's Law, staking rarity, Layer 2 ecosystem, loyalty bonus, and execution capital are incorporated into the calculation.
Current Valuation and Market Position
According to the system's calculations, Ethereum's current market price stands at $3,037.5. In contrast, the fair value derived from the average of the 10 models is estimated at $4,574. This discrepancy suggests that ETH is approximately 50.6% "underpriced" based on this valuation framework.
Currently, ETH is trading at $3,037.5, marking a 0.4% increase in the last 24 hours. The cryptocurrency boasts a total market capitalization of $366.5 billion and a trading volume of $854.1 million. Despite recent gains, the asset remains 37.7% below its all-time high of $4,946.1.