Is ETH overpriced?

[Abiky]

Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Thoughts?

[create_crypto]

ETH has real big usage:
- coins created there working as smart-contracrts, it is now 85% of all coin on coinmarketcap
- this year ETH also began the main platform for DeFi market

And you must remember that ETH still have not hit their biggest historicaly price - more than 1000$.

But real issue in speculations, because ETH old holders and users know all this this already.

[Tytanowy Janusz]

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Litecoin does not have deflationary model. Its inlfationary but with smaller and smaller inflation over time. BNB is one of few trully deflationary coins, should it be bigger than bitcoin that is inflationary too? No because this is only one factor out of dozens.

And litecoin is pretty much dead. Why anyone would want to invest in litecoin? Its not bitcoin (so no "digital gold" story), its archaic altcoin with huge competition. Etherum is used everywhere due to defi hype, new dex technology (AMM) that gives huge liquidity. In 2018 tokens were moving from ETH to their own chains, in 2020 they started to wrap back to eth to be listed on uniswap.

[Francis Freeman]

I am not gonna go into discussion about the supply of ethereum but ethereum after Bitcoin is the most prominent crypto currency.so you will definitely see a price bump whenever there is a bull run.

[husdemba]

Most of the cryptocurrencies today are Ethereum based. Given the facts, nobody can belittle Ethereum. Ethereum may have higher prices. It has this potential and i think will perform better in 2021.

[jrrsparkles]

Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Thoughts?

Because ethereum managed to get more community support than litecoin so the price per unit for ethereum is higher than litecoin which doesn't mean one coin is better than others.Litecoin is something similar to bitcoin but more suitable for smaller payments whereas ethereum network is more popular due to the smart contracts which is not possible neither in bitcoin nor litecoin.

[Coyster]

The pros of the ethereum network outweighs the cons, and eth have developed a sustainable system for the long term, you could mention other coins as you did with Litecoin that are prolly doing well, or you feel should be doing better than eth, but generally what ethereum offers in the altcoin network is quite much, plus the use cases attracts investors in their numbers, that's why eth has a large community of investors and why the price is higher than other alts and it'll continue to appreciate the more.

Having said that, come to think of it, how many times have there been a so called 'eth killer coin', ever wonder why at the end, it's the coin that ends of being the deadcoin and not ethereum, it's cause it's actually not 'overpriced'.

[sarmrakib]

I am not gonna go into discussion about the supply of ethereum but ethereum after Bitcoin is the most prominent crypto currency.so you will definitely see a price bump whenever there is a bull run.

I am completely agree with you that if we see a strong uptrend we can see eth will flying .So on the bullish market eth always sow the uptrend.The recent uptrend is so strong and possibly it will touch 1000$ soon .Eth is the top altcoin with huge amount of volume so we can see a huge bullrun after btc being stable .

[Claudio99]

You would have been right if Ethereum have no good use case, but eth is very useful, let's not forget that, again this is the second best crypto project, I believe DeFi isn't the only reason why Ethereum surge in price, bitcoin keeps taking the lead and Ethereum can't be left behind in this case

[kpierce77]

Maybe we should add some other factors as well. despite what the OP has explained, it seems like it is true. In terms of technology, I'm sure Litecoin won't lose to Ethereum either. but we are talking crypto here, where most people are still not very familiar and if they are retail investors, they also won't think about it that far. trend and also supported by the fact that ethereum has a very high user base is enough to make them have ATH above $1K, cmiw

[Mpamaegbu]

ETH has real big usage:
- coins created there working as smart-contracrts, it is now 85% of all coin on coinmarketcap
- this year ETH also began the main platform for DeFi market

And you must remember that ETH still have not hit their biggest historicaly price - more than 1000$.

But real issue in speculations, because ETH old holders and users know all this this already.

You just took the word out of my mouth. I wondered why the OP missed all that you pointed out in the first place. ETH is yet to get across half of what it did at ATH in comparison at the time Bitcoin hit ATH in 2017. Bitcoin is >$31,000 at the moment while ETH still lags behind abysmally with less than 50%. Definitely, I am still trusting that it's yet to begin its bull run. But of course, what gives ETH the impetus of demand is its smart contract. Without that, ETH would've long collapsed.

[bttmember]

Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Thoughts?

In my opinion it is underpriced and it is good chance to buy as many as one can because after eth 2.0 full launch eth will become a deflationary project that will burn and reduce supply regularly so that is why im bullish on eth and im looking for serious bulls ahead.

[Yey09]

We are in the extremly bool market. Greed index is in the maximum range. A lot of coins MAY be overpriced. However, everything will be normal while bull market is here

[robelneo]

ETH has real big usage:
- coins created there working as smart-contracrts, it is now 85% of all coin on coinmarketcap
- this year ETH also began the main platform for DeFi market

And you must remember that ETH still have not hit their biggest historicaly price - more than 1000$.

But real issue in speculations, because ETH old holders and users know all this this already.

I agree Everything comes down to usage, I'm also wondering with its huge supply like all the other coins it should not go up to more than $500, but take up the numbers of new and old projects using its platform, you will be amazed on the figures and take a look at the many innovations and new concept that was launched and will be launch revolving around Ethereum, Ethereum is a revolutionary concept that has taken the Cryptocurrency industry to a new height.

[zasad@]

Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Thoughts?

Ethereum will have a deflationary pattern or inflation will be minimal. Now a lot of coins are mined by miners, but this will last no more than 2 years (as Vitalik promised us)
Ethereum will soon be burned after the EIP-1559 update.
https://twitter.com/econoar/status/1340890862662782976

[jostorres]

The pros of the ethereum network outweighs the cons, and eth have developed a sustainable system for the long term, you could mention other coins as you did with Litecoin that are prolly doing well, or you feel should be doing better than eth, but generally what ethereum offers in the altcoin network is quite much, plus the use cases attracts investors in their numbers, that's why eth has a large community of investors and why the price is higher than other alts and it'll continue to appreciate the more.

Having said that, come to think of it, how many times have there been a so called 'eth killer coin', ever wonder why at the end, it's the coin that ends of being the deadcoin and not ethereum, it's cause it's actually not 'overpriced'.

ETH has just one problem that you are forgetting, it is "wanted" for many things, but all those things require you to use that ETH, meaning ETH will be bought and used so the price will go up, but so will the ethereum transaction fee as well, which sometimes makes things not worthy when you are a small time investor.

Definitely if you are investing 1700 dollars on some project, eth charging 5 bucks may not be a big deal, but when you get something free, and it worths 1 dollars, you can't even sell that because selling it costs like 3 dollars, so if you sold something you got for free, you are still down some money. Hence, I believe the reason why ethereum is so popular also causes it to not grow bigger at the same time, I know it is a bit confusing but that looks to be the case right now and that is about it. We need cheaper transactions without a doubt.

[Smitty Werben Man Jensen]

When compared to Litecoin which only has a max supply of 84 million, Litecoin is far less than Ethereum which has a supply of 114 million,
of course, if compared to that the Ethereum price is overpriced because Ethereum's fundamentals are better than Litecoin,
if we compare it with just one view, then that is a mistake, Ethereum has many ecosystems on its platform,
of course this makes the demand from Ethereum even higher.

[FaucetKING]

Ethereum is not overpriced, it should be valued at more than 1000$ per coin because it is really a highly valuable Blockchain that is being used by thousands of humans. It's underrated for sure.

[lionheart78]

Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.

What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.

Thoughts?

I am surprise you are still wondering why ETH is more expensive than Litecoin.  Isn't it established that the market is dictated by supply and demand?  And your question had been answered by your 1st paragraph.  Due to the community of ETH holding their token, the token in circulation is greatly reduced thus creating a scenario of "scarcity" in the market, making the price goes up.

[jacafbiz]

I think it is unfair to Ethereum to say it is unfair, most of the innovations in the space is done on Ethereum, look at the transaction fees on Ethereum, look at the top 100 on CMC have of the projects are listed on Ethereum, I believe Ethereum will hit ATH soon when this Bitcoin run correct