ETH’s Current Price Is “Hilarious”, but Whale Still Cashes Out

The cryptocurrency investor Ryan Sean Adams revealed in an X post yesterday that he believes Ethereum (ETH) trading at $2.2K is “hilarious.” In his post, the investor also stated that the leading altcoin has strong fundamentals backing it, which should result in ETH trading at $22K.

The first key fundamental that adds to ETH’s intrinsic value is the fact that Ethereum makes $2.7 billion in annualized profits. According to the investor, this makes it the only profitable chain with a P/E ratio of 98. This ratio is higher than that of Amazon, which has a P/E ratio of 75. It also places Ethereum on the heels of Zoom with its ratio of 153.

In addition to the impressive P/E ratio, Ethereum now has entire chains, called Layer-2s, as new buyers of blockspace this cycle. The X user noted that five Layer 2 networks were the top 10 consumers of Ethereum blockspace in the last week.

Another interesting fundamental is that Ethereum has gone deflationary this cycle. This is after it inflated 3-4% per year in the previous cycle. Bond holders, known as validators, are also earning 5.3% per year. This is a stark contrast to other chains that offer nominal returns. Subsequently, the investor shared that he sees ETH as an internet bond.

The last two fundamentals included in the post are the potential for ETH to achieve ETF status alongside Bitcoin (BTC) and the fact that Ethereum is now fully proof of stake. This prompted the investor to speculate that traditional ESG investors will identify the Ethereum ETF as the only one that checks all of their boxes.

Although the X user believes ETH is very underpriced, a whale took the opportunity to cash in some of its profits over the past few hours. In a post earlier today, Lookonchain revealed that a whale that has been dormant for five years seems to be selling ETH.

The post shared that the whale deposited 39,260 ETH, valued at $87.5 million, to Kraken in the past few hours. This whale received 47,260 ETH, worth $11.34 million, at an average price of $240, between June and August of 2017, noted Lookonchain. Should the whale sell now, its profits would add up to approximately $78 million.