Tokenization could be the next narrative for Ethereum, but it’s still nascent.
Regardless, Ecoinometrics thinks ether (ETH) is undervalued.
Market analysis firm Ecoinometrics believes that ether (ETH), the cryptocurrency of the Ethereum network, does not currently have the narrative strength or momentum necessary to challenge the dominance of bitcoin (BTC) in the digital asset market.
For that entity, the altcoin ecosystem goes through a stage of stagnation, without the growth engines that characterized the 2020–2021 cycle. Among these catalysts were non-fungible tokens (NFT) or Web3 games, now out of fashion.
“Beyond its current valuation, it is difficult to see Ethereum questioning Bitcoin’s leadership in the short or medium term,” the firm notes. They believe that the lack of compelling new stories limits speculative interest and capital flow into Ethereum.
Currently, bitcoin dominates 59.9% of the entire digital asset market. It is an average range in which it has remained in the last three months, following a clear upward trend, as seen in the following graph:
For Ecoinimetrics, the tokenization of real-world assets appears as the most promising narrative for Ethereum. Although he warns that this trend “still needs momentum” before being able to sustain a new stage of growth.
Despite this panorama, the consulting firm recognizes that ETH could be undervalued. Based on its historical relationship with BTC, the firm estimates that ether is trading at a 42% discount to its “fair value,” CriptoNoticias reported.
Even so, Ecoinometrics concludes that BTC maintains a dominant position that is difficult to challenge, both due to its institutional adoption as well as for its narrative of digital reserve of value.