Simon Kim, CEO of South Korea-based cryptocurrency investment firm Hashed, announced that he has developed a comprehensive valuation system to calculate the fair value of Ethereum.
According to the latest data shared by Kim, Ethereum is significantly undervalued compared to its current market price. The overall fair value of this system represents a price of approximately 50% above ETH’s current level.
Simon Kim’s model aims to measure Ethereum’s intrinsic value through a multi-layered approach that includes different perspectives, rather than a single metric. Ethereum’s value is calculated using a total of 12 separate models grouped under four main methodological headings: traditional financial techniques, on-chain asset metrics, network effects, and scarcity of supply. The average of all these models is used to create a composite fair value.
According to this calculation, the current price of Ethereum is approximately $2,921, but the total fair value including all 12 models is calculated to be $4,404. This means that ETH is undervalued by approximately 50.8% compared to its current market price. However, while the majority of models produced a “green” signal, a limited number of models showed that Ethereum may be overvalued with respect to some indicators.
*This is not investment advice.