JP Morgan Executive Claims Ethereum is Overvalued

20 September 2021 | Updated: 20 September 2021

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.”

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.