The co-chief investment officer of blockchain investment fund Pantera Capital says Ethereum has huge upside potential in the current market cycle.
In a new blog post, Joey Krug points to Ethereum’s dominance in smart contract transactions as the key driver of growth.
“The vast majority of the value in that system (decentralized finance) is transacting on top of smart contracts written on Ethereum. The net present value of the global settlement layer’s transaction fees for all of finance is a considerable number.”
Krug cites Ethereum’s rising revenues since the start of 2020, which according to his data have surged by more than 39,000% since the start of 2020.
“Even after its recent run-up, it still trades at a P/S ratio of 40x, which will become earnings for ETH stakers when value switches to Ethereum 2.0. Revenue on Ethereum has grown over 400x since January 2020.”
With the tailwinds driving the second-largest cryptocurrency, Krug says he believes ETH could soar as high as $18,000 in the current bull run.
“It’s an insanely cheap asset compared to anything else in the public markets with that kind of growth relative to its revenue multiple. It’s not entirely crazy to see Ethereum being able to 5–10x from here, especially when compared to traditional equities markets…
As the market gains confidence that DeFi is here to stay and isn’t a fad, multiples will go up too, and things will begin to be valued by price/revenue/growth in DeFi.”
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The post Pantera Capital’s Joey Krug Unveils Exponential Ethereum Price Target for Current Crypto Cycle appeared first on The Daily Hodl.