JP Morgan Thinks Ethereum is Overvalued: Market Doesn’t Care

Last week mega bank JP Morgan issued a report that Ethereum is massively overvalued based on the amount of network activity on the blockchain.

Valuation exercises for cryptos are never easy, and being at a big bank must be difficult – given their connections with the fiat banking system.

Nikolaos Panigirtzoglou at JP Morgan thinks that ETH should be worth around $1,500 – and he told media,

“We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We’re struggling to go above $1,500…There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialise.”

Of course, Ethereum has some problems, The network is currently still expensive to use, but despite this, it is still drawing huge numbers of users and devs.

Infura Opts for Ethereum

Infura, a ConsenSys company that provides an extensive suite of blockchain or distributed ledger tech (DLT) developer tools, is introducing the public release of its Ethereum (ETH) transaction relaying service, Infura Transactions (ITX).

According to a previous announcement, the company informed markets its new Ethereum transaction relaying service will help developers send transactions. It will handle stuck transactions, managing nonces, and prioritizing entice block producers’ transactions, among other things.

Although Ethereum Improvement Proposal or EIP-1559 was born to help decentralized application (dApps) developers avoid overpaying gas fees for getting their transactions mined at most times, ITX can help users to avoid overpayment pay when the Ethereum network gets congested.

These issues not only might make dApp developers a burden, but also increase overall costs and the uncertainty for their end-users.

ConsenSys is Kind of a Big Deal

ConsenSys is one of the leading companies in Ethereum software, that supports developers, enterprises, and people around the world to launch modern financial infrastructure, access the decentralized web, and build next-generation applications.

Its platform is serving millions of users, supporting billions of blockchain-based queries for its clients. Billions of dollars in digital assets have flowed through the company’s products, including Infura, Quorum, Codefi, MetaMask, Truffle, and Diligence.

So – Why Ether?

What JP Morgan might be missing is the fact that Ethereum was the first blockchain to offer a range of advanced services, and also seems to have both DeFi and NFTs on lock.

NFTs have been common in the digital art and collectibles world, which is making digital artists change their life by gaining an income from sales to a new crypto-savvy audience.

In addition, NFTs are attracting celebrities as they represent a new opportunity to connect with fans.

However, these are only some of the advances for NFTs on Ethereum blockchain. In addition to being digital art, NFTs can be used to represent ownership of any unique asset, such as a certificate of an item in the digital or physical realm.

NFTs Are Here For Real

NFTs and Ethereum have made a massive impact on the global markets, both financial and other, in a very short amount of time.

In fact, it is difficult to overestimate the potential for NFTs – or Ether.

One wonders why JP Morgan is making calls for ETH prices to fall. Does this represent some sort of attempt at fundamental analysis – or does the bank want to expand its position at the $1,500 level.

There is little doubt that JP Morgan’s HNW clients are paying attention to Bitcoin and Ethereum now. With rampant inflation, and wild government spending, it is only a matter of time until ETH prices blast higher, and enter the five figure club.

No doubt, the road will be rocky.

The post JP Morgan Thinks Ethereum is Overvalued: Market Doesn’t Care appeared first on Blockonomi.

Text source: Blockonomi

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