Ether Is Exponentially Overvalued, According to Samson Mow Heres Why
Bitcoin OG and Jan3 CEO Samson Mow is once again targeting Ethereum (ETH), the industrys second-largest crypto by market value. Mow has suggested that ETH is currently overpriced and could undergo a deeper price correction in the near future.
Ether Overvalued Versus BTC?
Earlier today, Samson Mow resurfaced an old tweet he published back in August 2022 regarding the valuation of Ethereum.
At the time, ETH was changing hands at around $1,600 per coin, which is the same price level ETH was hovering at earlier today. Contrarily, Bitcoin was valued at $21,500 in 2022, but was priced at around $80,000 today.
The Bitcoin pioneer said Ether was overpriced relative to Bitcoins valuation. Mow noted that Bitcoin has a total supply of possibly less than 21 million.
Meanwhile, he claimed that out of Ethereums 122 million total supply, 72 million were premined. In his opinion, ETH would be valued at $9,200 per coin if it had a supply of just 21 million coins like BTC. Based on this calculation, Mow noted that Ether investors are paying a premium price of $9,300 to acquire one unit.
Roughly three years since publishing his initial post on Twitter (aka X), Mow still thinks Ethereum is overvalued. This means that the assets price is not justified by its supply, of which he argues 60% was printed from thin air.
At the time of writing, ETH has been sitting just above $1,500, having lost 7.2% of its value over the past 24 hours. The cryptocurrency recently witnessed a steep decline as investor focus shifted to a potential bigger conflict between the U.S. and China.
Cryptocurrencies rebounded on Wednesday following President Donald Trumps announcement of a 90-day pause on tariffs for countries except China. However, crypto prices swiftly retraced today after a White House official confirmed that the total tariff rate on China now stands at 145%, not 125% as President Trump announced yesterday.
Read more: https://zycrypto.com/ether-is-exponentially-overvalued-according-to-samson-mow-heres-why/
Text source: ZyCrypto
