$4.5T Asset Management Firm Says Ethereum Is Undervalued

The crypto-centred branch of the prominent investment giant Fidelity Investments has recently commented on the trading rates of Ethereum. The company has more than $4.5T in assets under management. It asserted that Ethereum (ETH), the 2nd-biggest digital token in terms of market capitalization, is at present trading at considerably lower rates.

Fidelity Digital Assets Says 2nd-Biggest Crypto Asset Currently Trades at a Discount

The latest report issued by Fidelity Digital Assets has pointed toward the present circulating supply of Ethereum. As per the report, ETH’s circulating supply is currently 120M tokens. On the other hand, the annualized fees of the network have reached beyond the spot of $6.8B. The company calculated that ETH’s price should be almost $2,090, implementing a model related to reduced cash flow.

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The asset management platform’s additional analysis also disclosed that the valuation of Ethereum appears to be accompanying its network activity. This is particularly seen in the case of the fees that it collects. Fidelity Digital Assets envisions this figure, moving toward a double-digital rise in the next 7 years. This would potentially be assistive in crossing the threshold of up to $20B by 2030.

The report elaborated on the underlying dynamics and discussed Ether’s value. It claimed that the value of ETH is more conveniently modeled after the network’s transformation to a proof-of-stake consensus mechanism. According to the company, Ether’s use cases have increased in number, generating more demand. This paves the way for additional utility and value along with increased fees.

Ethereum Whales Purchase $400M Worth of ETH Tokens within Twenty-Four Hours

Fidelity Digital Assets also focused on the likely hindrances influencing the Ethereum network. The firm added that such roadblocks take into account the weakened relationship between the ETH as well as the value the token offers to network consumers. The report is witnessed when ETH whales have purchased Ether of more than $400M worth in twenty-four hours.