ChainCatcher news: The topic of comparing the valuations of Ethereum and Amazon has sparked heated discussions on X. Santiago, founder of Inversion Capital, believes that Ethereum is overvalued. He stated that ETH’s price-to-sales ratio (valuation of $380 billion, annual revenue of $1 billion) is much higher than Amazon’s—even during the dot-com bubble, Amazon’s price-to-sales ratio never exceeded 28 times. The price Ethereum holders pay for each $1 of revenue is about 146 times what Amazon investors paid back then. He argues that Amazon is also a successful network. Whether it’s a company or a network, its pricing depends on the economic benefits it generates (revenue and cash flow), while TVL, collateralized assets, or settlement volume are not revenue.
Ethereum treasury company SharpLink, on the other hand, stated that traditional valuation models do not apply to Ethereum: Amazon is a company, while Ethereum is a network. Ethereum is the target network for the migration of the future financial system, and its potential market size is much larger than Amazon’s when it was valued at $380 billion. A better way to measure Ethereum’s value is to look at the scale of assets secured by its network. Historically, as more assets have migrated on-chain and been settled (TVL growth), Ethereum’s price has risen accordingly (though not entirely in sync).
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Whale "0xaBb" Purchases 2,521 ETH Worth $5.5M and Supplies to Aave V3
Gate News message, whale address "0xaBb" purchased 2,521 ETH using $5.5 million USDC and supplied it into Aave V3. The whale currently holds 36,385 ETH valued at $81.24 million and has borrowed $41.8 million USDC. The address is 0xabbd5b2b0b034781e58434736728b9d0673de7f1.
GateNews34m ago
Charles Schwab Investment Management releases a cryptocurrency investment research report, saying that even a small allocation can increase portfolio risk
Charles Schwab Investment Management published a report stating that cryptocurrency investments do not have a fixed allocation percentage and should be determined based on investors’ goals and risk tolerance. It proposes two investment approaches: return-based and risk-based, and also notes that a modest increase in crypto asset allocation can improve portfolio performance, and that cryptocurrencies can provide diversified returns for traditional asset portfolios.
GateNews1h ago
Schwab’s seven-year stance reversal: Releases a cryptocurrency allocation research white paper
The cryptocurrency asset allocation white paper published by Charles Schwab on April 7 shows that its view of cryptocurrencies has changed. The white paper proposes two allocation strategies based on return and risk, and notes that cryptocurrency assets carry higher risk than traditional assets—even a small allocation can significantly affect portfolio risk. Charles Schwab also plans to roll out a “Schwab Crypto” account that will allow clients to trade Bitcoin and Ethereum directly.
MarketWhisper1h ago
CoinShares: Net digital asset inflows last week were 224 million, with Switzerland in first place and the United States trailing behind
According to a CoinShares report, last week global digital asset investment products saw net inflows of about $224 million. Sentiment improved slightly, but afterward, due to the impact of retail data and rate expectations, capital momentum weakened. Europe performed strongly, with Switzerland contributing $157.5 million. Bitcoin faced selling pressure from miners, with inflows into short Bitcoin products hitting a new high. Ethereum, meanwhile, continued to see net outflows, driven by regulatory uncertainty.
MarketWhisper1h ago
