July has been a bumpy month for cryptocurrencies. After Ripple's victory against the SEC, there were good rises in Bitcoin and altcoins, especially in XRP. However, there were regressions afterwards.
At this point, one of the altcoins that experienced a good rise after the Ripple victory was Etheruem. Because ETH passed $ 2,000 in the rally sparked by XRP. However, with the declines, Ethereum also fell to the level of $ 1,800.
Evaluating Ethereum's price movements, Matrixport research head Markus Thielen said that revenues in Ethereum decreased, indicating the potential for a decrease in ETH price.
Speaking to Coindesk, Markus Thielen stated that Ethereum's price seems overvalued compared to its declining revenues.
Historically comparing ETH revenues, Thielen said that Ethereum's average monthly revenue is currently $178 million, down 364% from the $826 million level seen during the bull market days of 2021.
“Currently, ETH staking revenues are at $178 million, down 364 from the 2021 bull market.
This is because the 4.98% average staking yield is lower than the reference US interest rate currently 5.25% – 5.5%.
Based on this quantitative approach, Etherum's fair value should be close to $1,000, which is 46% lower than current prices ($1,856).
While we don't necessarily foresee such a drop for ETH, a position can be taken for this drop.”
*Not investment advice.
