Digital Asset Research has released a comprehensive 48 page analysis of the Ethereum network, including economic activity and valuation measures, insight into the scaling debate, notable milestones within the development roadmap, as well as potential technical and regulatory risks. In summary:
• We see the update to the Ethereum Network later this month, which is expected to increase the functionality and security of the network, as being positive for the health of the Ethereum ecosystem.
• Although past price performance relating to previous network upgrades is no indication of future price performance, Ethereum’s last major update resulted in a run up in price its native token, ether.
• Our analysis shows that a large percentage of Ethereum’s current price is based on Ethereum’s future use-cases, rather than its current utility, but this should be considered in the context of the age of the project.
• We consider the scalability of the Ethereum Network to be one of the most crucial factors in determining its long-term potential, with several proposals on the horizon.
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