The Ethereum network value has successfully managed to exceed several major companies including Roche, P&G, and Nestle. Ethereum has recently attained its all-time high market capitalization of $337 billion.
Moreover, Ethereum price has rallied over 200% during 2021. As a result of this remarkable figure, the digital token has now surpassed the entire market cap of large firms like PayPal with $308 billion and Proctor & Gamble with a $326 billion market cap.
Remarkable Market Cap Of Ethereum
The market cap has been achieved through the multiplication of the previous price with the total number of outstanding coins, irrespective of them moving. On the other hand, this rarely reflects the price average where the majority of the investors had transacted.
The investors with traditional ‘value’ finance can be assessed by comparing valuations and multiples. They are usually calculated through the market share, earnings, and sales. These also ‘strive to apply similar ‘value’ metrics upon the cryptocurrencies that have multiple uses and creates discomfort and uncertainty.
There is an absence of bulletproof metrics that can evaluate the way the ETH value stacks opposed to their potential. The crypto may simultaneously serve as the digital value store. On the other hand, functioning as a token is needed to access the ETH network.
Although ETH is not a secular firm, their decentralized apps like dApps managed more than 100,000 active addresses regularly. ETH network also manages almost $12 billion per day transactions and transfers. This indicated surpassing any company of S&P 500.
Decentralized protocols do not have the perils like tax changes, regulatory changes, and operational liabilities. Perhaps this is another reason for the sky-high valuations. This further attracts investors in buying ETH stocks.