Ethereum joins the $200 billion club — But is it worthy?

Ethereum joins the $200 billion club — But is it worthy?


Ether (ETH) is up 150% in 2021, causing its market capitalization to soar above $200 billion. Most traders are fixated on the unitary price, even though it is entirely arbitrary, therefore missing relevant milestones and comparables.

Ether and Bitcoin YTD performance. Source: Digital Assets Data

Investors, mainly those coming from the traditional industry, are used to compare multiples of earnings, sales, and market share. Meanwhile, when valuing a cryptocurrency with multiple use cases, there is no single metric to gauge its potential. Ether might simultaneously act as a digital store of value while functioning as the token required to access the Ethereum network.

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ETH market cap, in USD billion. Source: TradingView

To evidentiate the myopia caused by unitary prices, Cardano (ADA) is priced below $1, although its market capitalization is over $26 billion. Therefore, the outstanding number of coins matters just as much. At the other extreme, Cover Protocol (COVER) unitary price is nearly USD 1,600, even though its

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