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Ethereum is trading below its fair value according to 10 of 12 major pricing models, with some frameworks suggesting upside potential of more than 200%, CryptoQuant CEO Ki Young Ju said Monday citing data from valuation platform ETHVal.
According to the Ethereum valuation model, ETH’s current market price drastically underrepresents its true potential. Across multiple trusted metrics, analysts see upside ranging from 60% to over 200%.
With institutional interest surging and network activity expanding, the model signals a rare alignment of market forces, suggesting that Ethereum could be on the cusp of a major valuation breakout.
Ethereum valuation model data appears overwhelmingly bullish, according to Ju, who shared the results with CryptoQuant’s analyst community on Monday.
The research, based on assessments from ETHVal, a platform designed to measure Ethereum’s intrinsic value across a dozen of the most respected models, places ETH’s composite fair value at $4,535.1.
This means Ethereum could see a potential 60% valuation upside compared to its current trading price.
“The Ethereum valuation model readings represent the most comprehensive cross-disciplinary assessment of ETH’s fair value we’ve seen this year,” Ki Young Ju said in a statement, emphasizing that trusted academics and traditional-finance economists were instrumental in shaping the methodologies.
Among all 12 indicators, Metcalfe’s Law delivered the most explosive upside projection, valuing ETH at $9,534, a 213% premium over market price.
This Ethereum valuation model measures the crypto asset’s worth based on the square of the number of active users—highlighting how quickly Ethereum’s value compounds as network participation grows.
“Metcalfe’s Law continues to be the strongest long-term Ethereum valuation model because it directly correlates value with real usage,” said Dr. Elias Simos, a blockchain researcher at Decentral Park Capital. “The trajectory still favors expansion.”
Other bullish models include:
More conservative models still place ETH above market price:
Two models—Revenue Yield ($1,433.8) and P/S Ratio (25X) ($923.4)—suggest ETH is overvalued, though analysts note these tend to lag in periods of rapid network expansion.
Ethereum valuation model optimism came during a difficult trading day as Ethereum slipped 5% within 24 hours, according to data from CoinMarketCap.
The decline contrasts sharply with major inflows into U.S. spot Ethereum ETFs last week, signaling that institutional buyers may be unconcerned about short-term price noise.
Data from ETF tracking platform SoSoValue shows $76.55 million in inflows on Friday alone, marking five consecutive days of positive flows.
For the first time this month, Ethereum ETFs outpaced Bitcoin ETFs, which recorded $71.37 million in net inflows on the same day.
“This divergence—declining price but rising institutional accumulation—suggests that professional investors are leaning heavily on the Ethereum valuation model outlook,” said Katie Talati, Head of Research at Arca.
The Ethereum valuation model findings align with recent market structure reports. Last week, Cryptopolitan highlighted that ETH futures trading volume was expanding faster than both Bitcoin and Solana, and open interest levels were rising sharply.
Another analysis revealed that exchange reserves for Ethereum have dropped to all-time lows, signaling minimal sell-side pressure.
“Supply tightening is a critical factor in every Ethereum valuation model,” noted James Check, Lead Analyst at Glassnode. “When available supply collapses and demand stays intact or rises, fair value tends to adjust upward quickly.”
As 2024 enters its final quarter, the Ethereum valuation model consensus appears to suggest the market is underpricing ETH by a meaningful margin.
With institutional appetite rising, network activity expanding, and valuation frameworks converging on higher fair value tiers, analysts argue ETH may be entering a new accumulation phase.
“This is the strongest multi-model alignment we’ve seen in over a year,” Ju added. “The Ethereum valuation model data indicates that the market is still mispricing the asset.”
