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The real price of ETH is $6,000, according to Bloomberg

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Although ETH is currently trading around $3,200, this is not its real price. According to a study published by Bloomberg, the current value of the second largest cryptocurrency on the market is “cheap”

The real price of ETH is more than 6k USD

According to Bloomberg Intelligence and the cash flow model, ETH is valued at $6,128. That is, 180% above the current price.

Also according to the news and analytics company, the network’s next major upgrade, which changes the “outdated” PoW standard to PoS, will make ETH a stock-like instrument. Consequently, this should increase your price.

Furthermore, Bloomberg analysts argue that the upcoming “Merge” update is key for ETH. After all, it will change the method of proper valuation of the project, as the value of the network will be calculated based on the profit generation instead of the extracted ETH.

“The new valuation approach will bring traditional financial ratios to ETH analysis, such as P/E multipliers,” the report highlights.

Thus, the fees paid on the network will act as revenue for the company and the constant burning as a repurchase.

ETH on the Rise

With the growth of the DeFi and NFT sectors, network transaction fees have increased to $9.8 billion in 2021. This is 16 times higher than 2020 results.

ETH has become the first and largest network for a variety of NFT and DeFi projects. As such, the ETH network has the highest total blocked value (TVL) compared to all other networks, with $123 billion blocked in smart contracts.

Experts point out that ETH will generate even more fees in 2022, targeting around $12 billion by the end of the year, which is 30% more than it generated in 2021.

Finally, the Bloomberg analysis highlighted that, with PoS in operation, the value of ETH can fluctuate from $6,000 to $9,000. More precisely, they used three metrics that point ETH at $6,128; $5,539 and $9,328 depending on the success of the PoS. The average of these three prices would be $6,998.

Ethereum price prediction 2022 – 2026

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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