Is ETH overpriced?

[Abiky]

Eth may sound overpriced considering the lows it made in march 2020 but to be realistic eth is not just another coin it is a powerhouse with an extended ecosystem and protocols so i think considering the fundamental and technicals it is not difficult to guess that there is madsive upside potential still available for Eth.

You do have a point there, mate. ETH is more than just a coin. It's a platform where decentralized applications are built. This means that ETH's use cases are not limited to finance. We could say Ethereum is much more versatile than Bitcoin in this regard. As dApps rely on ETH as "gas" to perform network operations, the demand of ETH is relative to its usage in the mainstream world. I've seen somewhere that ETH has a higher transaction activity than Bitcoin itself. The high prices on the market tells us that it's extremely demanded by individuals, investors, and traders alike. ETH would've had a higher price than Bitcoin if developers would've imposed a hard cap in the coin's supply. With a fixed number of ETH that will ever be mined, its price will only go higher for the foreseeable future.

At least, the ETH blockchain works as intended by providing a decentralized "World Computer" for the masses. It may be expensive and slow to use at times, but it's still better than Bitcoin. We cannot compare Ethereum with Litecoin directly as they're completely different things. Litecoin is built only for finance, while Ethereum does that and a lot more. Ultimately, the market will decide Ethereum's price as mainstream adoption grows. Whenever it's overpriced or not, that's up to the investor to decide. For now, let's focus on ETH's utility to make the world a better place. Just my thoughts

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[AssociatesBumble579]

Maybe Ehtereum has a higher price, but if you see the future of Ethereum then you can understand the reason. Because it is the most potential altcoin in the crypto market. The market says end of the 2021 Ethereum will reach $2000.

[Abiky]

Maybe Ehtereum has a higher price, but if you see the future of Ethereum then you can understand the reason. Because it is the most potential altcoin in the crypto market. The market says end of the 2021 Ethereum will reach $2000.

I guess you're right. It's all about demand/mainstream adoption, than anything else. ETH's demand is soaring like there's no tomorrow because of its usefulness compared to other cryptocurrencies on the market. It's as good as Bitcoin is right now. People are pouring money into ETH like crazy, despite being inflationary by design. If the trend continues, ETH could easily hit $2k - $3k by the end of year.

Still, I believe that transaction fees are quite overpriced. Paying upwards of $20 each time you interact with a decentralized application is not economically feasible in my opinion. Only the wealthy will be able to pay high fees to join in the "De-Fi" craze. Fortunately, the ETH 2.0 upgrade is slowly being introduced into the Blockchain. It shouldn't be long enough before we get to experience a slight decline in fees. ETH will only get better as new network upgrades are implemented over time. Prices per coin are largely determined by people in the mainstream world just like it's the case with Bitcoin and any other cryptocurrency on the market. Whenever ETH is overpriced or not, that's up to you to decide. Just my opinion

[Zeehaxan]

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 is un-matched in case of practicality, use cases and mass scale use both by developers and end users so i do not think that ethereum's comparison with LTC makes any sense. Obviously litecoin is a big and prominent project as well but still it has no competition at all with eth as eth is a much bigger ecosystem and business.

[coinporch]

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?

comparing ethereum with litecoin is not fair buddy
because ethereum has a lot of features rather than litecoin especially eth is the first smart contracts plaform in this crypto world
and for me ethereum price is not overpriced

[doctor877]

the fact that majority of project utilises the ethereum blockchain makes it more valuable even though its not yet capped. now that some development is going on to make it more better, gas fee seems to be a threatening thing for new projects on the chain, this is a very big issue currently. which is why new projects and some old are migrating to others chain. having successfully surpassed the previous ATH, i am confident it will set a more higher one before any retracement or big dip.

[lumierre]

The high price is due to the fact that there is a lot of demand. And as we know from the lesson in economics, the higher the demand, the more supply. And of course the price will be high. Everyone uses it and wants to use it because of its simplicity.

For all the advantages of Ethereum, the coin is going through difficult times right now. I am sure that the developers are aware of all the risks and do their best to cope with the load as soon as possible. But the steady growth of ETH inspires confidence and calm. It remains only to wait for the blockchain to stabilize and the price of commissions to decrease.

[kevinzxz]

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 is more popular and of course the first smart contract project is Ethereum, so it is only natural that the price of Ethereum is higher than the same project as Ethereum and in my opinion Ethereum price is not overpriced, because Ethereum is not a stable coin and there is no limit to the price of Ethereum, so Ethereum price can increase at any rate, even the price of Ethereum could increase by more than $2,000 in the future, because anything can happen in cryptocurrency (including the price of Ethereum which has risen very high).

[poodle63]

In my opinion ethereum is over price now, it should be below $1000 as long as they can not fix transactions fees, with these madness transaction fees no retail investor will come to project which use ethereum.imagine if ethereum price reach $5k. How much we pay the fee for trading transaction on uniswap.

The fact that the fee kept increasing despite it being really expensive means there's a lot of transactions going on out there which reflects the demand.It's not gonna go down anytime soon if you correlates the fee with the price and whether ETH is overpriced or not, considering all the dapps and how the ecosystem has grown so far it's safe to say that it's not really overpriced. Not to mention the development of dapps that's really fast in Ethereum blockchain.

[Altcoinsintel]

The valuation of Ethereum as with all altcoins is subject to Bitcoin cycles. Until the moment Bitcoin reaches the top, Ethereum with all the rest cryptocurrencies together will keep rising. It did a new all time high, making it at least not worthless as XRP, BCH, BSV. Only a handful of older coins did that and all the rest are too far from their ATH.

Which altcoins were dominating in 2017-2018 except Ethereum? It was Litecoin, NEM, Dash, XRP, ETC, Monero, Bitcoin Cash, and a few more that were pumping with an army of trolls behind them like Verge, Tron and others. Ethereum is the only one that made it to a new ATH, while the rest are still down between 80-95%.

Most of the altcoins we see today are in the top-50 they are overvalued, but Ethereum is a mystery. I am 100% sure we will be able to buy 80% lower from today's price, perhaps a year or two later, so for this reason I am not recommending investing in it today. However, for short term traders, it could be great, since Bitcoin can keep rising for a few more months, while Ethereum will keep following. So, for the short term, it is not overvalued and in an altcoin explosion term, it could double or higher, however, I will rebuy Ethereum at very lower prices as an investment and if it manages to scale and have low fees of 1 gwei.

[Nisterse]

I think ETH is not overpriced. I actually think its much more expensive that it should be. Considering it is used by many projects such as DeFi's, it should have way higher price than it should have. Now that it hit around 1,600$, I doubt that people will get it less than 1,500$ anymore. Fees are the real problem with ETH right now. ETH do get a new ATH but gas fees sure is hitting new highs too which is so frustrating. Volumes are still coming to ETH coz of DeFi support. DeFi and ETH 2.0 launch are the main things that keeps ETH going.

[Handsome Boy]

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 with you if Ethereum is a very useful project, so in my opinion the price of Ethereum is not overpriced at this time, because with a very good project from Ethereum, then of course the price of Ethereum is still very cheap and I believe that the price of Ethereum will continue to increase very high from the current price.

[criket]

On the other hand, when Ethereum's price increases, the transaction fee every time you use Ethereum must be higher. I regret this because several times using ethereum is currently more delaying sending my tokens.
almost 30% of the estimate in my wallet when trying to send I have to pay a transaction fee. this is a very disappointing thing for me

homework for the ethereum development team to be able to solve the transaction fee problem that has always been a complaint from ethereum blockchain users. I read that it took me more than $ 20 for a token to exchange transaction. others have had a more expensive experience. but in terms of the price of the ETH coin, it can actually be more expensive and not too expensive when looking at how to use the platform and network as described by the OP. the problem is the transaction fees as you experience many ethereum blockchain users.

[LordMiguel]

i think Ethereum current blockchain congession which results to the high gas fees is the reason the price maintain a steady momentum. Also not been able to move pass the 2000 dollars price mark. this particular problem happened in the btc network and was resolved immediately. yet ethereum has been struggling to resolve there gas fees issue making it impossible for low come traders to buy/sell tokens.

[seleme]

From the end of the year until now the price of ethereum has indeed seen a very large price increase this could be due to the influence of the price of bitcoin which has increased very sharply, causing the price to go up, ethereum has a very large supply and the possibility of collapsing prices can get to low prices , but no one knows exactly when it will happen.

That is right when BTC starts getting up, ETH is getting also up. No doubt ETH will keep price increases and as you above mentioned ETH has a very large supply, this affects also ETH price. ETH is making the best in its own history. But everything is possible in this world, none can predict what will happen. We will see what happens by the end of this year. The high correlation rate is the main factor that decides the future rate of altcoins, paying attention to the total correlation rate can help you to understand the market movements and predict it in the right manner.

[Wahyuihib]

Maybe that causes eth to have a high price, because most of the crypto users use eth as a daily trading transaction activity. but my explanation is not meant to belittle Litecoin. because I also have litecoin

[lixer]

homework for the ethereum development team to be able to solve the transaction fee problem that has always been a complaint from ethereum blockchain users. I read that it took me more than $ 20 for a token to exchange transaction. others have had a more expensive experience. but in terms of the price of the ETH coin, it can actually be more expensive and not too expensive when looking at how to use the platform and network as described by the OP. the problem is the transaction fees as you experience many ethereum blockchain users.

There is no homework needed to be done, eip 1559 is there to drop the price of transactions for sure, all the "I will bid higher to get my transaction first and faster" will be done, and the price will go back to normal levels. That is just what they are planning on doing right now, that is the quick solution, and not even a permanent definite solution.

For that you have to wait few years, and price may actually drop during that period and I really hope it does because I will buy cheaper and cheaper, but the real change will come when it turns to proof of stake.

There is a huge bomb waiting to explode as well, a lot of unwanted small tiny things all clogging the market, when that proof of stake comes that will be all passed as well, there will be bigger blocks and there won't be any problems with miners requisition ton of money, so I hope it will be fixed. There is no guarantee of course for any of this to happen, but it is at least the path we already have.

[ddrIess]

Is ETH overpriced?

The five stages of grief are:
1    denial.
2    anger.
3    bargaining (You are here).
4    depression.
5    acceptance.

[carrie_white]

In fact, I think ethereum deserves a higher price than now, because ethereum has become an important part of the crypto world, and the advantages of ethereum's smart contracts make it the most widely used smart contract.

[Jackl87]

Compared to BTC i really don't think that ETH is overpriced. Just compare the functionality of those 2 projects. Of course bitcoin still has the advantage that everyone outside of crypto thinks about bitcoin first when they here someone talking about cryptos.
ETH offers just so much more with smart contracts. Just look at the defi hype. Defi is only possible because of the smart contract feature that ETH has. Of course the fees at the moment are totally insane, but ETH is already working on a solution for this and ETH 2.0 is progressing.
So i can imagine that ETH prices keeps on climbing in the next years.