CryptoQuant CEO Reveals: Multiple Valuation Models Signal Ethereum Is Severely Undervalued
Forget the noise—the data is screaming one thing.
Ethereum isn't just cheap; it's trading at a discount that has analysts double-checking their screens. According to the head of on-chain analytics firm CryptoQuant, several independent valuation models are flashing the same bullish signal. It's a rare convergence that historically precedes major moves.
The Models Don't Lie
These aren't back-of-the-napkin calculations. We're talking about sophisticated frameworks that analyze network activity, fee revenue, and holder behavior. When they all point in the same direction, even the most hardened crypto skeptic should take note. It suggests the market is either missing a fundamental shift or is simply asleep at the wheel.
What's the Market Missing?
The core thesis is simple: Ethereum's current price fails to reflect its utility as the world's primary smart contract platform. While traders chase the next memecoin frenzy, the foundational engine of DeFi and Web3 is being priced like a legacy tech stock—a classic case of Wall Street myopia, where they value the plumbing only after the sink starts dispensing gold.
This isn't hopium; it's math. And right now, the math adds up to a glaring buy signal. Will the market finally listen to the models, or will it take another record-breaking rally for everyone to play catch-up? The data's on the table. The rest is just psychology—and a little bit of greed.
Metcalfe’s law values ETH the most, with more than 200%
Metcalfe’s law, which states that the value of a network grows in proportion to the square of the number of real active users or nodes in the network, had the highest ETH valuation. The model proposed that the crypto asset is undervalued by more than 213% at a projected price of $9,534, according to an image shared by Ju.
10 out of 12 Ethereum valuation models say ETH is undervalued. https://t.co/HmBeUNeQro pic.twitter.com/ng0FbHnPoT
— Ki Young Ju (@ki_young_ju) November 29, 2025
DCF staking yield ranked second among the 12 valuation models, with a 200% undervaluation that priced ETH at $ 8,996.80. Validator Economics valued Ethereum at $6,985.1 while Settlement LAYER followed closely behind with a valuation of $5,105.8. The Commitment Premium valued ETH at $ 5,068.90.
App Capital, which incorporates total on-chain assets, including stablecoins, ERC-20 tokens, non-fungible tokens (NFTs), real-world tokenized assets (RWAs), and bridged assets, priced the crypto asset at $4,920.5. L2 Ecosystem and TVL Multiple valued ETH at $4,716.1 and $4,110.5, respectively.
MC/TVL Fair and Staking Scarcity models had the lowest ETH valuation above the crypto asset’s market price, valuing ETH at $3,523.3 and $3,496.5, respectively. Revenue Yield, which values ETH by the yearly revenue obtained from the network, divided by the staking yield, revealed that ETH was overvalued and priced the crypto asset at $1,433.8. The P/S Ratio (25X) model priced ETH at just $923.4 according to ETHVal.
Ethereum dips by 5% despite renewed institutional interest last week
Data from CoinMarketCap shows that Ethereum is down 5% in the last 24 hours, despite the fresh bullish valuation analysis and renewed institutional interest witnessed last week. Data from the U.S. spot ETF tracking website SoSoValue shows that spot Ethereum ETFs witnessed inflows worth $76.55 million on Friday, marking a five-day streak of positive flows. Friday’s inflows exceeded those witnessed in spot Bitcoin ETFs on the same day, which recorded $71.37 million in net inflows.
The news comes after Cryptopolitan reported that ETH futures trading was expanding faster than that of bitcoin and Solana. The report also highlighted that the crypto asset’s open interests were rising. Another report signaled that ETH is trading near a fair value territory. According to the publication, the reserves of Ethereum exchanges are at an all-time low, indicating a near absence of readiness for spot selling.
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