Simon Kim, the founder of the venture capital firm Hashed, has launched a live
Ethereum
valuation dashboard that calculates the cryptocurrency’s estimated fair price at $4,747.4, indicating it is currently undervalued by 56.9% compared to its market price of $3,022.3
according to the report
. This platform refreshes every two minutes and
incorporates eight different valuation frameworks
, such as Discounted Cash Flow (DCF), Metcalfe’s Law, and Total Value Locked (TVL) multiple analysis, to deliver institutional-level perspectives on Ethereum’s fundamental value. The project highlights a rising trend among institutions to use fundamental analysis in crypto, moving away from the market’s traditionally speculative approach.
The dashboard merges techniques from conventional finance with blockchain-specific indicators. Standard models like DCF, which treats staking rewards as ongoing cash flows, and the Price-to-Earnings (P/E) ratio, modified to view transaction fees as earnings, are used alongside crypto-native metrics like TVL multiples and Metcalfe’s Law. The latter, which asserts that a network’s value increases with the square of its user base,
produced the highest valuation at $9,583.6
, suggesting Ethereum is undervalued by 217.1%. In contrast, the P/E model indicated Ethereum is 70.2% overvalued at $899.2, while the Revenue Yield model pointed to a 52.4% overvaluation at $1,438.8.
The overall fair value of $4,747.4 is determined by assigning greater weight to more reliable models—those like Metcalfe’s Law and DCF are weighted nine times higher than less reliable ones, such as Staking Scarcity. This methodology resulted in five “buy” signals, one “hold,” and two “sell” signals across the eight models.
Kim pointed out that the dashboard is not an absolute valuation
but rather a resource to prompt investors to look beyond mere price speculation. For example, the TVL multiple model, which multiplies Ethereum’s TVL by 7 and divides by its supply,
calculates a fair value of $3,998
, indicating a 32% undervaluation.
The launch of the dashboard emphasizes Ethereum’s significance as a core asset in the digital asset space. With 12.1 million daily transactions across Ethereum and its Layer 2 networks, and $68.9 billion worth of ETH staked, the platform’s utility goes far beyond speculative trading
according to analysis
. Kim’s tool is designed to bring transparency to a market often influenced by hype, especially for projects built on Ethereum, including decentralized finance (DeFi) applications and NFTs
according to reports
. A more stable and accurately valued Ethereum could increase trust in these sectors, potentially reducing price swings and enhancing liquidity
according to experts
.
Although the dashboard represents an innovative approach, its effectiveness will depend on whether it gains traction among institutional players and the wider market. Some critics argue that certain models, like the P/E ratio based on transaction fees, depend on assumptions that may not remain valid as the network evolves. Still, Kim’s initiative signals a broader movement toward applying traditional financial analysis to the crypto sector, a development that could strengthen market credibility and attract more long-term investment.
