{"id":24670,"date":"2025-06-13T10:00:09","date_gmt":"2025-06-13T07:00:09","guid":{"rendered":"https:\/\/forklog.com\/en\/ethereum-deemed-undervalued-and-misunderstood-by-institutional-investors-say-experts\/"},"modified":"2025-06-13T10:00:09","modified_gmt":"2025-06-13T07:00:09","slug":"ethereum-deemed-undervalued-and-misunderstood-by-institutional-investors-say-experts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ethereum-deemed-undervalued-and-misunderstood-by-institutional-investors-say-experts\/","title":{"rendered":"Ethereum Deemed Undervalued and Misunderstood by Institutional Investors, Say Experts"},"content":{"rendered":"

Renowned technical experts and Ethereum advocates have declared that the second-largest cryptocurrency by market capitalization is significantly undervalued. This was reported by The Block<\/a>, citing a report for institutional investors.<\/p>\n

<\/p>\n

Experts believe that when comparing Ether to commodities like oil, its fair long-term price could reach $740,000.<\/p>\n

\n\u201cWe need to adapt old valuation methods to fundamentally new objects. To view foundational blockchain assets as ordinary tech stocks is to underestimate their nature,\u201d said Vivek Raman, co-founder of the newly established think tank Etherealize, in a conversation with the publication.<\/cite><\/p><\/blockquote>\n

Comparing the cryptocurrency to \u201cglobal reserve assets like oil, the bond market, and the M2 money supply<\/a>\u201d provides better insight into the \u201cend state Ethereum is striving for,\u201d Raman noted.<\/p>\n

\n\u201cMass adoption will be an event on the scale of the internet\u2019s emergence. Possibly even more significant,\u201d emphasized the co-author of the study titled Bull Case for Ethereum.
<\/cite><\/p><\/blockquote>\n

Experts noted that Ether has taken on the lion\u2019s share of on-chain activity \u201cwith signs of product-market fit.\u201d Primarily, these are stablecoins and RWA \u2014 initiatives of leading asset managers and infrastructure providers.<\/p>\n

\"1-1600\"
Shares of various blockchains in the tokenized real-world assets segment. Data: RWA<\/a>.<\/figcaption><\/figure>\n

\n\u201cETH is not just a token. It serves as collateral for the on-chain economy, fuel for computation, and financial infrastructure with income potential. It is actively accumulated, staked, burned, and spent,\u201d the report states.<\/cite><\/p><\/blockquote>\n

Ethereum\u2019s Value Proposition<\/h2>\n

Experts also highlight structural features that make the cryptocurrency attractive. For instance, the implementation of the burn mechanism via EIP-1559 as part of the London hard fork set a cap on the maximum annual issuance growth rate at 1.51%. This is below the current levels of most fiat currencies.<\/p>\n

\"Ultra-2\"
With 109,000 ETH burned annually, Ethereum\u2019s inflation rate is 0.7%. Data: Ultrasound<\/a>.<\/figcaption><\/figure>\n

\n\u201cWhen you understand that the supply is limited, you have a sustainable and reliable asset [\u2026]. As on-chain activity grows, yields could decrease to much lower levels, even negative. ETH\u2019s lag behind BTC is a temporary price distortion, not a structural issue, which opens a rare opportunity for an asymmetric bet,\u201d Raman emphasized.<\/cite><\/p><\/blockquote>\n

Amid Israeli airstrikes on Iran, Ethereum\u2019s price fell by 8.2% in a day, according to CoinGecko<\/a>. The asset is trading around $2532 \u2014 48.3% below its ATH, reached in November 2021 near the $4878 mark<\/a>. <\/p>\n

Despite this, the report\u2019s authors are confident that Ether has the \u201cshort-term\u201d potential to reach $8000; eventually $80,000, if used as a reserve asset and commodity.<\/p>\n

The number of investors accumulating Ethereum continues to grow, similar to how Michael Saylor\u2019s Strategy accumulates Bitcoin. For instance, the \u201cstrategic ETH reserve\u201d supported by Joseph Lubin holds assets worth approximately $2 billion, and the largest blockchain applications and related DAOs hold tens of thousands of tokens.<\/p>\n

However, not everyone shares the confidence that Ethereum will eventually become a reserve asset. Analyst and DBA co-founder John Charbonneau, despite an optimistic view of the project, believes that even now Ether is overvalued and does not recommend<\/a> buying it.<\/p>\n

The report\u2019s authors themselves acknowledge that while \u201cthe narrative around Bitcoin is institutionally accepted,\u201d investors may find it more challenging to assess Ethereum\u2019s intrinsic value.<\/p>\n

In June, spot Ethereum ETFs outperformed<\/a> Bitcoin-based funds in daily capital inflow. <\/p>\n","protected":false},"excerpt":{"rendered":"

Renowned technical experts and Ethereum advocates have declared that the second-largest cryptocurrency by market capitalization is significantly undervalued. This was reported by The Block, citing a report for institutional investors.<\/p>\n","protected":false},"author":1,"featured_media":24669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,1156,1308],"class_list":["post-24670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-institutional-investors-and-whales","tag-rwa"],"aioseo_notices":[],"amp_enabled":true,"views":"41","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/24670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=24670"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/24670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/24669"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=24670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=24670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=24670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}