Ethereum (ETH), the world’s second-largest cryptocurrency, surged past $3,000 this week, outperforming Bitcoin once more. Analysts believe that the ETH price, which is now about $3,100, will rise further this year in 2022.
Based on the discounted cash flow model, Bloomberg analyst Jamie Coutts estimates that the price of ETH might reach $6,100. The Ethereum cryptocurrency, according to the expert, has a “unique combination of equity, commodity, and monetary features.”
Coutts is optimistic about the execution and consensus layers merging in ‘The Merge.’ Users will be able to bet their ETH and profit from it.
Stakeholders will receive a whopping 30 percent of the Ethereum transaction fees.
As a result, rising demand for ETH will result in greater fees and payouts. The Ethereum network is expected to generate $12.7 billion in fees in 2022, based on its present performance.
According to a discounted cash flow model, another market analyst, Ryan Allis, who manages a crypto quant hedge fund, says that ETH market valuations are worth $832 billion. Ethereum transaction costs topped $1.3 billion in January 2022.
According to Allis, Ethereum’s income in February 2022 was US$715.4 million. The annualized revenue should be US$8.58 billion, according to this figure. According to projections, the annual staking prize will be US$1.4 billion. The overall annualized revenue will rise to $9.98 billion as a result of this. Because there are no expenses associated with a distributed system, Allis explains that net profits are equal to revenue, i.e. 100 percent profits.
As a result, we may estimate that ETH is currently trading at a 36.6 ahead price-to-earnings multiple. Given the high multiples that growth stocks trade at, this is highly appealing. ETH prices will rise to more than US$8,300 if we use a forward P/E ratio of 100.
For the next 20 years, Allis forecasts a 25% annual revenue growth rate for ETH. The intrinsic value of ETH is now $7,000.
The top ten Ethereum whales’ holdings have continued to grow, approaching a 5-year peak once more. Santiment, an on-chain data provider, stated:.
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