Ethereum has been called an undervalued asset with upside potential of up to $740,000

According to researchers, Ethereum remains a “severely undervalued” asset due to institutional misunderstanding of its unique role in the onchain economy. This is stated in an analytical report cited by The Block. The authors emphasize that Ether cannot be evaluated as a technological stock – it should be perceived as a digital commodity and reserve asset.

Vivek Raman, co-founder of the Etherealize think tank, argues that ETH is similar to oil and the M2 monetary aggregate, and its ultimate goal is to become the backbone of the global digital financial system. He emphasizes: Ethereum serves stablecoins, RWAs and other onchain products with signs of maturity.

The report states that Ethereum serves as collateral, unit of account, and a means of generating income. EIP-1559’s inflation-limiting burn mechanism makes the asset comparable in stability to the best financial instruments.

Despite the current price drawdown amid geopolitical risks, the authors are confident in ETH’s strong long-term potential. They forecast growth to $8,000, and in more ambitious scenarios – to $80,000 and even $740,000.

Many investors, including developers, large DAOs and reserve structures like the Joseph Lubin Foundation, are already pursuing an ETH accumulation strategy. Their actions are reminiscent of MicroStrategy’s approach to bitcoin.

However, skepticism persists. DBA analyst John Charbonneau believes that ETH is overvalued and should not be bought. At the same time, even optimists admit: Ethereum is still more difficult to perceive by traditional investors compared to bitcoin.