Special Reports > The Investment Case for Ethereum

The Investment Case and Valuation for Ethereum

Ethereum, as the oldest and most prominent cryptocurrency apart from Bitcoin, plays a pivotal role in crypto and holds top position on important yardsticks such as transaction value settled, number of applications, and number of developers. This report investigates the investment case for ETH, the native digital asset token of the Ethereum network, and investigates a number of valuation models.

The Investment Case and Valuation for Ethereum
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The Investment Case and Valuation for Ethereum
Note: This report has been produced for professional investors only, such as asset managers, private banks, private wealth organisations, registered investment advisors, registered securities firms, fund service platforms, family offices, insurance companies, hedge funds, sovereign and pension funds.

About the Report

Insights

  1. 1
    Ethereum's Evolution and Standing
    Since its inception in 2015, Ethereum has continually set the standard in the cryptocurrency space with a series of groundbreaking achievements. Ethereum has solidified its position as a leading digital asset, boasting the second-highest market capitalization, only surpassed by Bitcoin.
  2. 2
    Decentralised Finance
    Ethereum facilitates swift and affordable peer-to-peer transactions, eliminating the need for traditional intermediaries. It supports the use of stablecoins, offering a safety net during market fluctuations, and provides opportunities for lending and borrowing cryptocurrencies, generating yield income and facilitating credit access.
  3. 3
    Innovations and Emerging Business Models
    Ethereum is at the forefront of fostering innovative business models, especially in the blockchain space. It enables the tokenised ownership of real-world assets and the creation of virtual economies through digital tokens. Major corporations like Visa, Mastercard, and Google have adopted Ethereum's technology for various applications, showcasing its substantial potential for business integration.
  4. 4
    Competitive Edge in the Industry
    Ethereum holds a significant competitive edge in the cryptocurrency industry. It enjoys a first-mover advantage as the pioneer platform for deploying programs and applications on its blockchain. Ethereum dominates several market aspects, including stablecoin market share, NFT trading volumes, and value locked on blockchain applications.
  5. 5
    Valuation
    The report includes a discounted cash flow model that forecasts future cash flows for Ethereum, based on the total fees generated within the network. These projected cash flows are then discounted to present value. The fees themselves serve as a tangible metric, representing the economic activity occurring on the Ethereum network.

The Authors