ETH Merge hopium or an expensive price/earnings level – Take your pick
The cryptocurrency market has continued to get better over the previous couple of days. The truth is, the crypto-market gained a complete of $150 billion to its capitalization, which now stands above $1 trillion. Ethereum is absolutely the chief when it comes to worth efficiency over the previous couple of days too – Up by 22% in every week and 5% in 24 hours.
Whereas this would possibly convey aid to ETH fans, the altcoin’s two-faced state of affairs would possibly simply mellow down the tone right here.
Highs to lows
First, some excellent news.
The deposit contract for staking on the Beacon chain – the blockchain offering the backbone of the Ethereum 2.0 ecosystem – has now collected over 13 million ETH.
That’s $18.5 billion of staked worth at present costs.
📈 #Ethereum $ETH Complete Worth within the ETH 2.0 Deposit Contract simply reached an ATH of 13,107,653 ETH
View metric:https://t.co/SzbMPqvhlb pic.twitter.com/TEEGPtMXGg
— glassnode alerts (@glassnodealerts) July 17, 2022
Ethereum 2.0 is a long-awaited Ethereum improve, one that can convert Ethereum’s consensus mechanism from proof of labor to proof of stake. Beacon chain stays the core of the Ethereum 2.0 chain, which is about to merge with the prevailing Ethereum chain and exchange miners by July this 12 months.
Likewise, Glassnode reported that the variety of addresses holding greater than 32 ETH has reached a 16-month excessive. I.e. the variety of tokens required to run a validator node. Nevertheless, with so many exchanges providing staking providers, buyers can stake with fewer than this quantity.
Unhealthy information to comply with
Nevertheless, right here’s the priority for the non-staking side of the biggest altcoin – Ethereum’s worth has declined by ~75% since its peak. And but, community earnings/exercise have declined extra.
Supply: Twitter
Andrew Kang, a well-liked crypto-analyst not too long ago make clear this state of affairs in a collection of tweets. He asserted,
“At peak, Ethereum traded at 33x P/E, it now trades at 123x P/E. If ETH traded at 33x P/E immediately, it might commerce at $360.”
Right here, PE represents the Value/Incomes ratio. This, as per the dealer, stays an “costly” stage, as noticed by an 18 July tweet.
For the uninitiated, significance of PE issues little in bull markets, however is what backside setters have a look at carefully in bear markets
Sure, pure PE doesn’t encapsulate all worth seize mechanisms of $ETH however is an effective metric to guage relative basic worth between durations
— Andrew Kang (@Rewkang) July 17, 2022
