AI translated#CryptoQuant#Ethereum

Ethereum is undervalued according to 10 out of 12 models, says CryptoQuant CEO.

01.12.2025

The second-largest cryptocurrency by market capitalization is undervalued according to 10 out of 12 widely used models, stated Ki Young Ju, CEO of CryptoQuant.

The aggregate “fair value” of Ethereum is approximately $4836, which is over 60% higher than its current price of around $2800 at the time of writing. Over the past day, the altcoin’s price has decreased by 5.9%.

Each model is assigned a reliability rating on a three-level scale, with the highest score indicating the greatest credibility. Most — eight out of 12 — scored at least two points.

“The models are created by reputable experts from academia and traditional finance,” noted Ki.

Ethereum is undervalued based on the following parameters:

1. TVL Multiple — the total value locked in the ecosystem of the second-largest cryptocurrency: $3806 (+34% relative to the current price).
2. MC/TVL Fair Value — fair value based on the market capitalization to TVL ratio: $3261 (+15%).
3. DCF (staking) — discounted cash flow model based on staking yield: $8481 (+200%).
4. Commitment Premium — a premium for commitment, determining asset value based on the share of long-term holders: $4758 (+68%).
5. Validator Economics — validator economics; fair asset price determined by the investor’s desired yield: $6696 (+137%).
6. Staking Scarcity — asset scarcity in the context of staking, linking price to the ratio of total supply to its liquid part: $3295 (+16%).
7. Metcalfe’s Law — network value grows proportionally to the square of real active users or the number of nodes: $8819 (+212%).
8. Ecosystem L2 — total value locked in all second-layer solutions: $4447 (+57).
9. App Capital — considers total on-chain assets, including stablecoins, ERC-20 tokens, NFTs, RWA: $4909 (+73%).
10. Settlement Layer — evaluates the blockchain not as a stock or commodity but as infrastructure: $5105 (+80%).

Meanwhile, the Revenue Yield model, which determines price through the ratio of the network’s annual income to the staking rate, indicates that Ethereum is overvalued by more than 62%. According to this approach, the fair price of the cryptocurrency is $1071.

The P/S Ratio at 25 (price-to-sales ratio) also suggests the leading altcoin is overvalued. Under this model, the asset should be priced at $677, approximately 76% below current levels.

In November, Ethereum co-founder Vitalik Buterin proposed shifting from scaling to network optimization.

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