Is ETH overpriced?

[SirLancelot]

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.

In order to explain why there is no real "cap" on how high ethereum can get, let me show you a great example totally related to this topic. When this topic was created ethereum was under 800 dollars, it was around 770 dollars and that was basically deemed too high for etheruem, considering the high fee's it should not go any higher without fixing that problem first. Now the price of ethereum is actually 1700 dollars, and the transaction fees were above 20 dollars just a day or two ago, and it is seriously very expensive to this day.

This shows you that ethereum doesn't really have a cap, it is unlimited at this point, sure it could not be 1 million dollars per ethereum, but if you think "it is going down NOW" all the time and it keeps going up one by one, that means you are constantly wrong, it may not skyrocket to 10k+ soon but it will keep going to 1800 to 1900 to 2000 and so forth over time.

[Jamesdila1]

Bitcoin has worse scaling issues. Do you think it's over priced too? In my opinion ethereum is not overpriced .

[dimonstration]

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.

Eth is really useful in terms of having transactions and as a mode of payments or any transactions that not really stay in our wallet for long that causes the price be these way and not too high, I don’t think it’s overprice, it’s already too late I guess from what price in can be just like in 2017 ath of btc and eth. What really overpriced in eth is its transaction fees with late response that makes some investors shift other platform.

[cloudfir3e]

But that's not the case, as ETH sits well above $600 per coin. Am I missing something here?

Of course you are missing something when ethereum costs around $ 600 you don't try to buy it and hold it.
and currently the ethereum price has reached $ 1600.
But it's not over yet, because altcoin season isn't here yet and you have the opportunity to buy and join the altcoin party this year

[ene1980]

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.

The price of ETH has rallied once the market turned to bull run and the entire run was made possible because of the bitcoin halving but the hype behind ETH started because of their plans on upgrading their network which will sort out majority of their problems in paper and they are changing the fundamentals from POW to POS, we will have a clear picture in a few months if the transaction charges issue will be sorted if not the price will dump.

[bct-user]

Bitcoin has worse scaling issues. Do you think it's over priced too? In my opinion ethereum is not overpriced .

No, both Bitcoin and Ethereum aren't overpriced. The prices of crypto coins are growing during the bullish season, so it is not so surprising if we see the price increased very big. We also must know if the prices of crypto coins have no limit to increasing, it is volatile and ready to soar or drop any time. It already happened for Bitcoin and Ethereum prices.

[muenze]

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.

This is a good post, even if I disagree. But the race is never won by the car with the most features. Its more about fun, usability,
image, acceptance, community... Story telling.

There is a lot of projects that can do the same ETH can do. Some do it worse, some do it better. The best example why ETH has
no intrinsic value or found a real use-case yet is the recent crash to $1400 from $80. Could an average person even understand
or ever use ETH? Will there ever be a true value in being able to buy and hold 1000 different tokens?

Theres also some other, smaller isues. Like ETH smart contracts not being exactly raved about by the dev community.

Unless you bought ETH for a few dollars, I dont see why you would even want it to succeed? Lets have a project that
everyone of us can have a part of before the billionaires get in.

[HaekalZ]

Ethereum is a blockchain that was developed to support scripting and the creation of decentralized applications and 'smart contracts' through its virtual machine (EVM)

if you ask me is ETH overprice or not, in my opinion, ETH is not overprice, i still remember bought ETH in 2017, and look at its value right now,
it keep increasing, i think the price is not overprice, you can still invest your money in ETH even now.

[Forsaken-Throat]

I don't think it was, since the beginning ETH price is too little to notice, same with other altcoins. ETH price right now is because of the past year that it accumulate in the crypto market.

[Scripton]

Its not ETH that is overprice but the gas fees!!  ETH volume sure is getting bigger even with high gas fees. This I think they should focus more when they launch ETH 2.0.

[Abiky]

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.

Couldn't agree more with you, mate. If Bitcoin goes up, so will other altcoins on the market. Ethereum is no different than the rest of the altcoins in this regard. It's very close to Bitcoin in terms of market cap, so we should expect it to "mimic" Bitcoin's price movement on the market. As of today, Ethereum is almost worth $2k per coin. This, coupled with increased network activity, should make fees (in terms of Fiat) soar like never before. From an economic standpoint, it's not feasible to send micropayments across the Ethereum blockchain with ridiculously high fees. "De-Fi" cannot achieve its full potential this way. It's why I think Ethereum is extremely overpriced these days. I find it odd for an "infinite" cryptocurrency like Ethereum to be as valuable as it is right now. No fixed supply, means inflation in the long run. Things would've been different if ETH devs established a hard cap in ETH's supply. They should copy the Ethereum Classic project's "Monetary Policy" if they want Ethereum to sustain its value for a long time.

Nonetheless, prices on the crypto market are getting insane these days. There's a lot of hype surrounding "De-Fi", the ETH 2.0 upgrade, Dogecoin, and now, Bitcoin itself. We should expect ETH's prices to go higher in the upcoming months due to "FOMO". But know this, once the hype comes to an end, ETH will be back to the way it was. Fees will become cheaper, while price per coin will decline. We just have to be patient until that time comes to use the ETH blockchain more thoroughly. At least, developers are working hard to make ETH economically-feasible in the long term. As long as the network remains decentralized, there should be nothing to worry about. Just my opinion

[KyoRider]

Its not ETH that is overprice but the gas fees!!  ETH volume sure is getting bigger even with high gas fees. This I think they should focus more when they launch ETH 2.0.

hahaha yes I agree with the gas fees, Im glad Ethereum price is getting its bullish momentum but its gas fees is also getting its high momentum which is hurting my profit with eth hope they fix it and focus on it.
"Ethereum Average Transaction Fee is at a current level of 22.54, up from 17.88 yesterday and up from 0.1339 one year ago" Vitalik Buterin should do something about those fees

[giammangiato]

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.

Yes, the increase of ETH price is certly connected to the big usage of it, but in this period it's only speculation. A lot of cryptocurrencies are connected to eth blockchain and this makes it almost irreplaceable. By the way also with ETH 2.0 we had a great increase of value, this is the demonstration that with improving the value of projects increase

[oprahwindfury]

The vast majority of the digital currencies today are Ethereum based. Given current realities, it's not possible for anyone to deprecate Ethereum. Ethereum may have more exorbitant costs. It has this potential and I think will perform better in 2021.

[acquafredda]

If Ethereum will not find a way to compete with its children (EOS,XTZ,ADA,BNB,DOT,LINK and many more) it may fail in the future. Today, I agree, Ethereum is the standard choice for devs and projects but let's be honest, with the recent gas fees spike, it is losing ground a bit.
I am very curious about the outcome of ETH 2.0 which I do not see ready to compete with its successors.

[enhu]

There is no other altcoin that made it on top which its ecosystem is also related to other altcoins. It's no wonder the price of other tokens rises when ETH rise. ETH isn't overpriced.

But would it change this time not that gas fees are tanking and the transactions of ERC20 tokens are getting lesser?  I'm not sure if there is a casino base ERC20 tokens that it has to be sent every now and then but if there is, it will greatly spend a ton of ETH fas for the casino function.

[acquafredda]

Not really, basically Ethereum price is skyrocketing because the demands of the ETH are rising.
Just look at the DeFi projects, Decentralized exchanges such as uniswap, 1inch, etc, they are using a lot of ETH for the gas fee.
So for me, the ETH price is not overpriced, it is just a simple supply and demand law.

If you consider there is no hard cap to the amount of Eth that can be generated, if I was an Eth holder I would be somehow worried. Eth is no more than dogecoin in terms of supply right now, because until they do not decide how many ethers there will be, I can easily say that ethers are overpriced.
Not having a cap, it makes eth worthless like fiat money.

[sammy21]

because for sure ethereum is being targeted by large investors in big investments this year, we see ethereum's movement going up very rapidly in the near future, besides bitcoin ethereum also has enormous potential and its supply will also increase as prices are good, in the near future. maybe altcoins can move quickly to follow the next bitcoin movement

increased supply? what do you mean by increased ethereum supply? isn't one of the purposes of the ethereum 2.0 update is to determine the supply that will circulate in the market? I don't expect ethereum to have such a huge supply. the 2.0 update that was just running was already getting the market pumping up. This will last quite a while, but be aware of bitcoin.

[Koutami]

Absolutely its overpriced. In my opinion if a cryptocurrency cant be used as a affordable transaction, its because of either the technology is bad or the Coin is overpriced.
In this case, i think the overpriced coins have contribution to this high gas fee issue. But im disagree if Litecoin has to more expensive than Ethereum.

If its overpriced, do you mean its will be a big correction near this time?
Im hesitate to have any investment to Ethereum at this moment and try to my luck with EOS.

[jan.nicolas]

Anything can be overvalued in a bull market, but not tokens from the top 10. It seems to me that ETH, like other top 10, will add at least x2 to the prices that we see on the market today. But there may be a different outcome of events.