Is Ethereum overvalued? Network value indicator’s all-time high suggests it is
Ethereum (ETH) is the second most valuable cryptocurrency and the leading infrastructure for Web3 and decentralized finance (DeFi). However, a recent indicator ’s all -time high suggests the token may be overvalued in relation to the network activity. Finbold retrieved premium data from Santiment’s Sanbase Pro on June 16, highlighting a network value indicator making bearish new highs. For validation, we also compared it to another solid network value indicator, both in a two-year time frame. Notably, the NVT metric raised concerns with an all-time high 134 ratio. This result indicates ETH’s daily capitalization is 134 times higher than the daily volume transacted on the Ethereum network. Santiment explained that this metric provides insights into overvalued cryptocurrencies similar to stocks’ Price-to-Earning (P/E) ratio. Picks for you ...