Ether trades about half the high price of all time, but the Ethereum network is still valued higher than some of the most outstanding companies in the world.
Ether (ETH) traded around USD 2,088 at the time of writing among the continuous outflows of the rotary fund (ETF), which is over 57% compared to the highest level of almost USD 4,900 in mid -November 2021, According to For Coinmarketcap data.
Despite this inheritance, Ethereum maintains market capitalization of almost $ 252 billion, exceeding global corporations, such as Toyota ($ 250 billion) and the total market value of precious metal platinum ($ 245 billion).
Other significant companies are currently worth less than the Ethereum network, are IBM, McDonald’s, General Electric, Shell and Disney. If Ethereum were a company, it would be the fifty -largest in the world, just behind Nestlé, with a market capitalization of almost $ 256 billion.
Alex Celebrakevich, founder of Celebrakevich Research, told CointeLgraph that speculative interest significantly contributes to the valuation of Ethereum, as well as “freedom from the framework of traditional finances.” He added:
“Ethereum talks about the future, new technologies and financial solutions. The project is still very young and attracts many new and young investors who are ready to take the risk. I think that the average zoomer will choose Ethereum for investments, not Toyota or IBM shares.”
Flavio Bianchi, Ambassador Polkadot and marketing director of a decentralized polymec funds platform, told Cointelegraph that the comparison is less insightful than at the beginning may seem. He emphasized that “Ethereum is not a business” – this is infrastructure. He explained:
“Its value is not only due to revenues or profit, but from the use and faith in a future role. It allows people to build, transaction, issue assets and coordinate without intermediaries.”
Strikevich also suggested that Ethereum became more attractive after switching to proof of the rate (POS), strengthening “its value as a deflation resource with potential growth in digital economy.”
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Is Ethereum a deflact resource?
Recent data from ultra -sound money show that Ethereum is inflationary again and the annual inflation rate was about 0.73% in the last 30 days.
The rate of inflation or deflation depends largely on the ETH fees burned by the network and the amount of the newly issued ether. The fees have been burned on the web since the implementation of the EIP-1559 in 2021, which in conjunction with a reduced edition after the POS passed caused the deflation of Ethereum during lasting network activity.
INTOTHEBLOCK data can be seen that on March 23, the daily fees for Ethereum fell to just over USD 337,000, the lowest value reported since June 2020. can be seen that March 23 was only 118.67 ETH fees, the lowest value reported this year.
Fees for Ethereum network transactions per day. Source: Ycharts
Over the past 24 hours, the ETH value has increased by almost 3.5%, increasing market capitalization by approximately USD 9.3 billion, with a total value of approximately USD 252.1 billion. For comparison, this number exceeds the gross domestic product of Greece (GDP), currently around 243.5 billion dollars.
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Strikevich emphasized that, apart from the fact that it is worth more than Greek GDP, the Ethereum market capitalization is also higher than GDP countries such as Slovenia and Croatia combined. He said it was more than an captivating factoid:
“For institutional investors, this is a sign of legality. Ethereum is valued for intelligent contracts, and DEFI has TVL [total value locked] Over $ 124 billion, considering this not only speculation, but also the infrastructure of the future. “
Pradeep Singh, general director of a company dealing in privacy and Gateway FM security infrastructure, said CointeLgraph that these numbers reflect “a fundamental change in the way we value digital infrastructure”:
“We are witnessing the growing recognition that significant parts of the global economy ultimately migrate to this infrastructure. Ethereum market capitalization is essentially a valuation in the future role as a settlement layer of everything, from financial services to supply chain management.”
The Ethereum protocol is still evolving when programmers introduce innovations, such as native rolling, additionally expanding the possibilities of blockchain and potential exploit.
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