The Managing Director of multinational bank JP Morgan Chase & Co., Nikolaos Panigirtzoglou, recently revealed that he believes Ethereum (ETH) is an overvalued digital currency.
After conducting several evaluation metrics of the network activity, he proposed a figure that best translated the value of the Ether. Panigirtzoglou and his team placed this estimate at $1,500, 55% lower than its current market price.
The Managing Director noted that ETH rallied due to optimism about future developments of the project. Panigirtzoglou noted that:
“We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We’re struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialize.”
JP Morgan Cites Loss of Uniqueness for Ethereum as Tipping Point
According to reports, some of the research has its foundation rooted in the assertion that the idea behind Ethereum has lost its uniqueness. The study explained that the network initiated the concept of Smart Contracts in the crypto industry. However, this feature has become a common feature for a deluge of networks, dubbed “Ethereum killers,” looking to steal market share from the market giant. Panigirtzoglou noted that:
“It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.”
While the new networks pose a real threat to its dominance, Ethereum’s impact on the market might prove very difficult to surpass. Even with immense funding, most of these projects operate on the Ethereum ecosystem, further building the case for Ethereum’s market control.
Speaking on the topic, the CEO of Skale Labs, Jack O’Holleran, noted in an interview with Insider that:
“Despite major partnerships [getting] announced on other chains, we still see the absolute majority of developers [getting] pulled into the Ethereum vortex.”
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