"Ethereum (ETH) Enters Most Severe Undervaluation Phase in Years"

JH Kim

Summary

Bitwise has assessed that Ethereum has entered its most severe undervaluation phase in years.
Andre Dragosch reported that Ethereum's price is fundamentally undervalued compared to on-chain activity and adoption metrics.
Ethereum has often recorded positive returns against BTC, predicting a potential rebound in February.

According to Decrypt, a cryptocurrency-focused media outlet, Bitwise, a digital asset management firm and Bitcoin (BTC) spot ETF issuer, has reported that Ethereum (ETH) has entered its most severe undervaluation phase in years.

Andre Dragosch, Head of Research at Bitwise Europe, stated, "Ethereum has consistently underperformed Bitcoin since the end of 2022," adding, "We believe Ethereum's price is fundamentally undervalued compared to on-chain activity and adoption metrics."

He further explained, "There is growing interest in artificial intelligence (AI), meme coins, and real-world asset (RWA) tokenization. These areas have lower transaction costs, putting the congested and high-fee Ethereum network at a relative disadvantage."

Moreover, he predicted, "Ethereum has recorded positive returns against BTC in 7 out of the last 8 years," and suggested that "Ethereum might rebound in February."