The chief strategist of the American bank JPMorgan Nikolaos Panigirtzoglu believes that ether is greatly overvalued, and its “fair price” should be no more than $ 1,500.
According to Nikolaos Panigirtzoglou, Ether should be trading much lower than its current value and staying at $ 1,500. This is because the Ethereum network is no longer unique and faces stiff competition from competitors such as Solana and Avalanche. The analyst explained that the growth of ETH is due to the confidence of traders and investors in the even greater prospects of the project after the transition to Proof-of-Stake (PoS).
“To determine the value of Ethereum, we look at the network hashrate and the number of unique addresses. The current price of ether assumes such a sharp increase in traffic that it is simply impossible to materialize, ”Panigirtsoglu said.
He acknowledged that Ethereum has indeed become a “pioneer” in the development and implementation of smart contracts. But now there are many other networks with similar functions, which is why these networks are often referred to as “Ethereum killers”. Panigirtzoglu called Solana and Binance strong rivals for Ethereum, and suggested that the competition will only intensify in the future. So, last week, the Alonzo update was successfully activated on the Cardano blockchain, which opened up opportunities for creating smart contracts.
However, Skale Labs CEO Jack O’Holleran is confident that despite the development of alternative solutions and their support from large companies, it will be difficult for them to surpass Ethereum. Most of the innovation is the responsibility of the developers of the Ethereum blockchain, which powers DeFi projects and non-fungible tokens (NFT), O’Holleran said.
“Despite the emergence of other solutions, we still see the vast majority of developers being drawn into the Ethereum maelstrom,” O’Holleran said.
Pantera Capital CEO Dan Morehead recently suggested that with the launch of Ethereum 2.0, Ether could surpass Bitcoin and become the largest cryptocurrency.
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