Simon Kim, CEO of the South Korea-based cryptocurrency investment firm Hashed, has announced the development of a comprehensive valuation system designed to calculate the fair value of Ethereum (ETH). According to Kim, the model indicates that Ethereum is currently trading at a significant discount to its intrinsic worth.
The proprietary system employs a multi-layered approach, eschewing a single metric in favor of a composite model. It aggregates results from a total of 12 separate valuation models, which are grouped under four primary methodological categories: traditional finance methods, on-chain asset metrics, network effects, and supply scarcity. The average of these models produces a single composite fair value figure.
Based on the latest data, the model calculates Ethereum's current market price at approximately $2,921. In contrast, the derived composite fair value stands at $4,404. This disparity suggests that Ethereum is approximately 50.8% undervalued relative to its calculated intrinsic value.
Kim noted that while the majority of the underlying models generated a positive or "green" signal, a limited number indicated that Ethereum might be overvalued based on certain specific metrics. The announcement emphasizes that this analysis is presented for informational purposes and is not intended as investment advice.
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