Fidelity Macro Strategist Says Ethereum Sitting at Massive Discount Compared to Bitcoin – Here’s Why

Jurrien Timmer, macro strategist at monetary big Fidelity, says that Ethereum is presently priced at an enormous cut price in contrast to Bitcoin.

In a thread to his 75,000 Twitter followers, Timmer says that Metcalfe’s Law, which states {that a} community grows in worth because the variety of customers on the community will get greater, will carry Bitcoin to new heights regardless of BTC’s current uneven price motion.

The analyst says trying at Bitcoin’s variety of customers is a extra correct manner to forecast price than the stock-to-flow mannequin (S2F), popularized by quant analyst Plan B.

“We tend to look at price, but for me, valuation is the more relevant metric. Here we see bitcoin’s ‘price-to-network’ ratio. Bitcoin’s fundamentals explain a lot of its meteoric price gains. Metcalfe’s Law at work. It’s not just about S2F.”

Source: Jurrien Timmer/Twitter

Timmer says that whereas Bitcoin’s community is rising steadily, Ethereum’s community (ETH) is rising at a fast tempo. According to the strategist, Ethereum’s quicker development fee might not but be mirrored in ETH’s valuation. He says ETH could also be buying and selling a major low cost, doubtlessly as a result of BTC remains to be being valued for its scarce tokenomics.

“Comparing BTC’s valuation to ETH, we see a big discount for ETH, presumably because investors reward BTC for its superior scarcity dynamics. Whether ETH will continue to catch up to BTC will be an interesting thing to watch in 2022.”

Source: Jurrien Timmer/Twitter

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