Is ETH overpriced?

[Dewajuna09]

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 think the eth price for now is very high. might be the new ATH. for investors may think again to buy back eth now when the price is already very high. maybe wait for the bearish market to buy back.

[nancy]

There are coudnt be overpriced project during bull run, simple truth, hah

[whyrqa]

Even with BTC price of 1mil there wont be a problem with transaction fees. There are already some projects that are working to fix that. Something like wrapped BTC where you pay transaction in other coins.

Wrapped coin should only be temporary solution to avoid the fee problem though.
We'll eventually find a way to solve the fee problem on various blockchain and tbh the biggest tackle is the fact that blockchain is decentralized and there's just many people's interests that confronts to each other however we gonna overcome that eventually, its just about time.

You are indeed correct that poor scalability is driving so much transaction costs today. One must take into account the fact that DeFi projects still continue to have a huge turnover in the cryptocurrency market, as well as USDT, which together fills most of the bandwidth of Ethereum. But soon the situation will change, as the hard backdrop of London to reduce commissions, which in its own will be compressed.

[molsewid]

Ethereum's current price is not overpriced. On the contrary, it is still too underestimated. Ethereum used to be about a tenth of the price of bitcoin. Now the price of bitcoin is about $ 55,000. At this price, ethereum should have a price of about $ 5,500, but its price is $ 1,746.
During the implementation of Ethereum 2.0 improvements, this coin should be completely updated and, including, become deflationary. After that, its price should rise significantly even in comparison with the above calculation. We expect the price of ethereum at the level of one hundred thousand dollars.

As i do agree with you mate, ETH with its current market value of 0$1703 isn't overprice indeed, i guess we could only rather say that it was an overpriced if it was a $10000 or higher than that. I do believe that ETH gas fee was the one that should be called as overpriced rather than the cryptocurrency market value itself. As of onow, upon checking the block folio ETH has a red arrow on it indicating that its value was lower than it has the past few days, then why could we say that it was overprice.

[Tash]

Ethereum's current price is not overpriced. On the contrary, it is still too underestimated. Ethereum used to be about a tenth of the price of bitcoin. Now the price of bitcoin is about $ 55,000. At this price, ethereum should have a price of about $ 5,500, but its price is $ 1,746.
During the implementation of Ethereum 2.0 improvements, this coin should be completely updated and, including, become deflationary. After that, its price should rise significantly even in comparison with the above calculation. We expect the price of ethereum at the level of one hundred thousand dollars.

As i do agree with you mate, ETH with its current market value of 0$1703 isn't overprice indeed, i guess we could only rather say that it was an overpriced if it was a $10000 or higher than that. I do believe that ETH gas fee was the one that should be called as overpriced rather than the cryptocurrency market value itself. As of onow, upon checking the block folio ETH has a red arrow on it indicating that its value was lower than it has the past few days, then why could we say that it was overprice.

Gee you must be one form the slow brigade. This thread was started at beginning of year, how does that work out to a red arrow?  ($730>$1750)
Second you maybe one of a few who pays more for the fee than for the concert ticket. That requires a special kind of thinking.

[rozak]

This is not true ethereum is not over price it is still under price but ethereum gas fee is over price but we can blame the market because of high demands of trading right now. But for me ethereum is under price still maybe it deserves higher price.

why do you blame the market? that's the system.
demand increases the price becomes high and transactions are getting denser and busier. transaction costs will also increase. we don't need to blame anyone in the current situation. Would you like to leave the current market and come back in 2018 when transaction fees were also very low?
I believe ethereum could cost a lot more than its current price in 10 years in the future.

[yurez]

We will see the strength of Ethereum and significant price increases after the full transition to PoS.  I am very optimistic about the Ethereum rate and I think that expensive transactions on the network are hindering growth right now.

[ttcsalam]

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.

Yes i have the same opinion.now they are trying some new news next month i think the price will Pump again.this is a good news for all investor. 

[Tipstar]

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.

Yes i have the same opinion.now they are trying some new news next month i think the price will Pump again.this is a good news for all investor. 

Ethereum as a utility token has a very high fees. It would not be sustainable for long term if they don't be able to get the transaction fees down. The current price is purely manipulative and depended on the limited tradable supply. The price increment has lowered the use of Ethereum which won't be a good thing as unlike bitcoin, rarity is not the selling point of Ethereum.

[Waleedzain323]

ETH is overprices not at all the network of ETH is more stron then ay other coin. ETH is not large its extra large due to Dapps and ERC20 based projects and i thin it will never back to $500 and ETH has potential to touch $5000 near soon in future.

[Traderbtcc]

I know the supply of Ethereum is quite huge for the price of Eth now, but we can't denial the fact that Ethereum blockchain is the breeding ground for about 98% of all the new altcoin projects out there, this has made Ethereum blockchain the most popular blockchain(if I'm not mistaken), also with all those ERC20 tokens on eth blockchain you will need eth as collateral for gas fees in order to send any ERC20 tokens, maybe with more ERC20 tokens coming out each day the price of Eth will keep pumping.

[Viscore]

I know the supply of Ethereum is quite huge for the price of Eth now, but we can't denial the fact that Ethereum blockchain is the breeding ground for about 98% of all the new altcoin projects out there, this has made Ethereum blockchain the most popular blockchain(if I'm not mistaken), also with all those ERC20 tokens on eth blockchain you will need eth as collateral for gas fees in order to send any ERC20 tokens, maybe with more ERC20 tokens coming out each day the price of Eth will keep pumping.

You have a point, but the question is, is that 98% a successful projects or is the majority of that 98% successful?

I believe only few of them are really successful, meaning they are not getting money from investors and ETH network at the moment is very congested resulted to high transaction fee. however, in terms of it's suppose to be real value, I think it's not overvalued as the market is just getting an adoption and it will continue to grow.

[GreenStox]

maybe because the demand or use that has been a lot from the public makes eth continue to be used and the price will continue to rise, even when the fees are very high like now transactions on the ETH network don't seem to decrease and tend to increase.
it looks like people will or are already used to this condition.

[BuNga_cute]

In my opinion, the current Ethereum price is not overpriced considering the high demand for Ethereum. Moreover, Ethereum is the king of altcoins
so it is only fitting that the price is expensive, therefore compared to other altcoins the Ethereum price is quite high. I think what is overpriced right
now is gas fees from Ethereum, I do understand the increase in gas fees due to the increasingly crowded Ethereum network.  But there should be
a solution related to the problem of gas fees, I hope the release of ETH 2.0 will make Ethereum gas fees much cheaper.

[gwdf1]

Ethereum deserves its current position in the rankings. And the cost of ETH is quite justified, the network really offers a lot of opportunities and tools. Perhaps for institutional investors, the issue of high commission fees is not as acute as for ordinary people in the crypto world.

[Skieleton]

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 noticed that BTC has a huge influence on the price of ETH. It has always been. There was a moment in June 2020 when this compliance was less but all the time it was ...

[btc-facebook]

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?

Although the maximum supply of ethereum is unlimited, ethereum ecosystem and usability is much better than that of litecoin, which is why the price of ethereum has risen so high. and also the hype about DeFi, DEX, Farm, Liquidy Pool as well which is another reason ethereum price increases and makes new ATH,

[bakasabo]

Ethereum was lucky to be in the right place фтв at the right time. Ethereum was first to offer ICO and allowed to easily start projects. I call this as easy money, as at the prime of ICO, everyone earned a lot. This has allowed to build a strong believe in Ethereum and grow popularity. Then there was a DeFi and swap boom. Right now, there are a lot of blockchains and projects that offer same services and Ethereum, if not has a better decisions how to make things. But they dont grow in price like ETH. So imo, ETH is overpriced.

[Pamadar]

With a lots of developments and functionable inside this market, yes indeed ETH deserve

the success in value right now, developers enjoy the concepts aside from high gas fees but the usages it's indeed successful.

Ethereum deserves its current position in the rankings. And the cost of ETH is quite justified, the network really offers a lot of opportunities and tools. Perhaps for institutional investors, the issue of high commission fees is not as acute as for ordinary people in the crypto world.

Although the maximum supply of ethereum is unlimited, ethereum ecosystem and usability is much better than that of litecoin, which is why the price of ethereum has risen so high. and also the hype about DeFi, DEX, Farm, Liquidy Pool as well which is another reason ethereum price increases and makes new ATH,

Yeah this project achieved the success due to the usages that it brought to this community,

and with all those hypes coming from project who has been developed inside ETH chain, it's adding everything and bringing the price to rise more.

[bryant.coleman]

ETH looks overpriced for me, given the outdated technology and issues in implementing ETH 2.0. ETH is the only altcoin having a market cap of above $50 billion. There is a huge gap between ETH (market cap of $203 billion) and the second ranked altcoin (Cardano, with a market cap of $40 billion). This gap is not justified, given the fact that Cardano is having a much more advanced technology when compared to ETH.