The FED's interest rate decision this week is of great importance in Bitcoin and cryptocurrencies. FED Chairman Jerome Powell's statements are as important as the FED's interest rate decision regarding the direction of cryptocurrencies.
At this point, while the FED interest rate decision on BTC and cryptocurrencies is awaited, research firm RxR said that Ethereum is traded at a 27% discount compared to its real value.
According to Coindesk, RxR stated that it is trading at a 27% discount to the fair value of ETH according to the Metcalfe law valuation model.
At this point, the report written by RXR analyst Lewis Harland included the following statements:
“Ethereum is currently trading at a 27% discount to its intrinsic value according to the Metcalfe index.
Because the Metcalfe model, which is updated by blending the number of active users in Ethereum layer 2 networks and active users in layer 1 networks, determines the valuation of ETH as 275 billion dollars, assuming that there will be no further user increase permanently.
This reveals that ETH is at a 27% discount compared to its real value.”
Ethereum continues to trade at $1,630 at the time of writing.
*This is not investment advice.