What's speculation?

Summary

  • some cryptoassets have P/E ratio due to the protocol revenue

  • usually it’s not paid as dividend but used to buy back the stock

  • Ethereum has actually better P/E ratio than SP500

Don’t look for the price now - notice that ETH shifted some of it’s supply side revenue ( miner’s revenue ) into protocol revenue ( EIP-1559 burn )

It means that ETH now has Price to Earnings ratio.

And the ratio is as follows ( hint: it’s dropping - so for the “value“ investors it’s becoming more and more attractive ) If the market is saying that 38x P/E ratio is reasonable when applied to stocks, maybe it’s somehow reasonable as well when applied to crypto-asset which can be both money and productive asset giving you yield or dividend buyback.

Trackato
Is Ethereum money?
Non-Oracle Smart Contracts Are Useless, Anyway Ethereum’s value proposition was something general (enabling a high rate of project-creation). However, Ethereum’s use cases are few (if not nonexistent), making the “generality” objective inappropriate…
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Caveat

The more profitable something is the more competition it would attract. Ethereum currently enjoys being the dominant position in the DeFi / NFT space but high fees can convince even diamond hands into using other blockchain platforms.

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