Ethereum Vs. Bitcoin – ETH Is At A “Massive Discount”

Macro Strategist Jurrien Timmer who works at financial giant Fidelity just said that Ethereum is currently priced at a massive discount compared to the king coin.

At the moment of writing this article, BTC is trading in the green, and the king coin is priced above $48k. ETH is also trading in the green and the coin is priced at $4,024.

Analyzing BTC and ETH prices

Timmer says that Metcalfe’s Law, which states that a network grows in value as the number of users on the network gets bigger, will carry Bitcoin to new heights despite BTC’s recent corrections in price.

The analyst says looking at Bitcoin’s number of users is a more accurate way to forecast price than the stock-to-flow model (S2F). As you probably know by now, this was popularized by quant analyst Plan B.

“We tend to look at price, but for me, valuation is the more relevant metric. Here we see bitcoin’s ‘price-to-network’ ratio. Bitcoin’s fundamentals explain a lot of its meteoric price gains. Metcalfe’s Law at work. It’s not just about S2F.”

He also said that Ethereum’s network (ETH) is growing at a rapid pace.

According to the strategist, Ethereum’s faster growth rate may not yet be reflected in ETH’s valuation.

He says ETH may be trading a significant discount. He made sure to explain that this could be because BTC is still being valued for scarcity.

“Comparing BTC’s valuation to ETH, we see a big discount for ETH, presumably because investors reward BTC for its superior scarcity dynamics. Whether ETH will continue to catch up to BTC will be an interesting thing to watch in 2022.”

Stay tuned for more crypto-related news and make sure to keep your eyes peeled on the crypto market. Despite massive price corrections, there are various optimistic price predictions these days.

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I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.