Ethereum Is 'Significantly Mispriced,' Say Experts, Citing Burn Mechanism, Institutional Demand, and Long-Term Potential
Ethereum may be trading far below its all-time high, but some of its most influential backers say that’s a fundamental misunderstanding of its value. A new report co-authored by leading Ethereum technologists and institutional thinkers argues that ETH, the second-largest cryptocurrency by market cap, is "significantly mispriced" and misunderstood by many investors — particularly institutions.
The 21 co-authors, including Ethereum researcher Vivek Raman, lay out what they call the “Bull Case for ETH,” pointing to both technical and macroeconomic factors that, in their view, make Ethereum one of the most undervalued digital assets on the market today.
Why ETH Might Be Undervalued
One of the key structural arguments centers on Ethereum’s supply dynamics. Following the EIP-1559 upgrade in 2021, Ethereum introduced a token burn mechanism that permanently removes a portion of transaction fees from circulation. Since then, ETH’s net supply inflation has dropped to about 0.092% annually — lower than both Bitcoin and fiat currencies. This capped and potentially deflationary supply, especially during periods of high on-chain activity, is seen as a strong foundation for long-term value.
“When you realize that you have this capped growth on supply, you’re looking at a very secure, sustainable asset,” Raman said.
He emphasized that Ethereum’s lag behind Bitcoin is not a sign of weakness, but rather a rare investment opportunity.
Institutional Interest Is Rising
ETH is currently trading well below its 2021 peak of nearly $4,900. However, some bullish forecasts in the report suggest short-term potential targets as high as $8,000 — and long-term valuations ranging from $80,000 to $740,000 if Ethereum evolves into a reserve or commodity-like asset.
That vision may be gaining traction. The Strategic ETH Reserve — backed by Ethereum co-founder Joe Lubin — reportedly holds around $2 billion worth of ETH. Major blockchain applications and decentralized autonomous organizations (DAOs) also collectively control tens of thousands of ETH, reflecting a trend of strategic accumulation reminiscent of Bitcoin’s “digital gold” narrative.
“There are already parallels to Michael Saylor’s approach with Bitcoin,” the report states, referencing the MicroStrategy CEO’s aggressive BTC purchasing strategy.
Not Everyone Agrees
Still, opinions within the Ethereum community vary. Jon Charbonneau, co-founder of DBA and a known Ethereum supporter, believes ETH is also mispriced — just in the opposite direction. “ETH is too expensive,” he’s argued, recommending against holding the asset despite being a long-term believer in the technology.
This divergence of views underscores Ethereum’s complex value proposition. Unlike Bitcoin, which has gained institutional acceptance as a digital store of value, Ethereum’s narrative is more multifaceted — combining elements of tech, finance, and infrastructure.
Ethereum’s Evolving Identity
As Ethereum continues to evolve, so too does its leadership. The Ethereum Foundation recently appointed two new co-directors tasked with sharpening the network’s public and institutional messaging. Meanwhile, Raman and Ethereum core developer Danny Ryan have launched Etherealize, a think tank focused on engaging with governments and institutional investors.
Ethereum currently secures over $767 billion worth of assets and dominates areas like stablecoins, real-world asset tokenization, and decentralized applications. More than 80% of tokenized assets in circulation today have been issued on the Ethereum blockchain.
“ETH is more than just a token — it’s the backbone of the on-chain economy,” the report concludes. “It serves as collateral, computation, yield, and infrastructure — all at once.”