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Since the peak of the last Bitcoin bubble in late-2017/early-2018, the vast majority of altcoins have collapsed dramatically from their all-time highs. Not even Ethereum has been spared.
From the all-time highs of just over $1,400, the asset is down over 85 percent, trading at $200 as of the time of this article’s writing.Ethereum price chart from TradingView.com
This is in line with other top cryptocurrencies, which are down similarly from the highs they established in 2018.
Though unlike its contemporaries, analysts say Ethereum is seriously undervalued, citing on-chain data indicating that ETH is trading far below a fair price.Ethereum is “doubly” undervalued: analyst explains
With the usage of the Ethereum network rocketing to fresh all-time highs despite the sinking price, Mythos Capital founder Ryan Sean Adams believes that ETH is “doubly” undervalued.
He shared the image below to illustrate his optimistic point, showing that for the past four years, the price of ETH has been closely correlated with the transaction fees Ethereum users pay to get their transactions processed.
Due to increased market activity, heavy stablecoin adoption, and gas-guzzling smart contracts on Ethereum, fees have skyrocketed over recent weeks while ETH’s price has largely stagnated. If the historical relationship holds, ETH is poised to rally at least 50 percent, Adams’ chart shows.ETH Price Vs Ethereum Blockspace Fees
The Mythos Capital founder continued that he expects Ethereum to develop into a store-of-value network in the coming years, which will see ETH begin to trade above the transaction fees relationship indicated above.Add ETH 2.0 into the mix
Adding to the ETH bull case is the Ethereum 2.0 blockchain upgrade, slated to begin its launch later this year, likely around July or August.
For those unaware, along with d...