The Managing Director of Managing Director at JPMorgan, Nikolaos Panigirtzoglou, declared that he believes Ether, which is the local asset of the Ethereum network, is completely overestimated. Panigirtzoglou took numerous measures of network activity and attempted to translate them into a value that highlighted the mean value of the asset. He along with his team put out estimates for the fair value of Ether at 1,500 USD, which is, as of now, 55 percent below today’s present market price.
The JPMorgan expert believes that the value has recovered because of the confidence the market has in the upcoming stages of the project. He stated that they observe the hash rate as well as the number of singular addresses in an attempt to comprehend the value of Ethereum. He added that they are fighting to go beyond 1,500 USD. According to him, the existing market price is displaying a substantial increase in usage along with traffic that might not emerge.
Part of this evaluation has its basis in the belief that Ethereum’s scheme is not as unique anymore in the sense that it is facing fierce competition from other, much newer chains like Avalanche and Solana. Ethereum started the concept and execution of smart contracts in the virtual currency market. That feature, however, is shared among a lot of chains known as “Ethereum Killers,” that are looking to have a go at Ethereum’s market segment by providing the same traits. Regarding this, Panigirtzoglou stressed that it is not particularly unique. There is already competition from Solana and Binance, and there is going to be more of that competition in the future.
Although these Ethereum network substitutes have emerged with considerable force in the market, it may be difficult to defeat the network effects of Ethereum. Despite having some significant venture capital (or VC) supporting them, a majority of the improvement is happening on Ethereum, which then moves on to spread to other ventures. This is the case of nonfungible tokens (or NFTs) and decentralized finance (or DeFi), features that initially emerged on Ethereum, only to later be ported to other separate chains.
Regarding this, Jack O’Holleran, the chief executive officer at Skale Labs, revealed to Insider that in spite of largescale partnerships being declared on other chains, the absolute majority of developers are still opting for working with Ethereum.