Ethereum Is Seriously Undervalued, According To Top Strategist Lark Davis
In a recent video, the popular crypto KOL Lark Davis shares with his subscribers the statistics to prove why Ethereum (ETH) is seriously undervalued at its current market capitalization and potential price movement.
“Even though we’re going through this kind of bearish moment in the markets right now, Ethereum is ready to just explode over the coming years”.
At the time of the video, Ethereum was trading at $1,991.43 with a market cap of 235 billion dollars.
Ethereum vs Paypal
In comparison with Ethereum, Paypal has a market cap of 340 billion dollars, which is more than 100 billion dollars more than ETH.
In 2020, over 15 billion transactions were completed by Paypal, accounting for $936 billion transaction volume: “That’s a lot of transactions. That’s almost a trillion dollars in total value settled by PayPal. PayPal is still a payment behemoth”.
Yet, compared to Ethereum, ETH did over a trillion-dollar in a total on-chain settlement in 2020. And in just Q1 of 2021, ETH settled transactions worth $1,5 trillion in 2021.
“In just the first quarter, Ethereum did 50 percent more transactional volume than PayPal did in the entire year in 2020″.
He further adds:
“It’s no wonder that PayPal has started selling bitcoin and Ethereum to their clients because they’re gonna get blockbustered if they don’t. They can see where the future is heading and it’s heading to online payments which is exactly why PayPal has, of course, started to allow its customers to pay for things online using bitcoin and Ethereum in their PayPal accounts”.
In addition, Davis also says that if the current 35 billion dollars of daily transactional value settled on-chain on Ethereum was to continue, it would mean that every 30 days, Ethereum is doing as much volume as PayPal does in a year.
“So approximately we’re seeing the Ethereum blockchain settling 12 times as much volume every single year in transactions compared to Paypal – one of the world’s biggest online payment providers”.
Ethereum as an incredible asset
In the next part of the video, the crypto KOL continues to bring PayPal as a comparison to ETH.
According to the trader, currently, PayPal pays zero percent dividends. As for ETH which has just introduced its staking function in December, it pays out a 6-7% earning per year.
“Much better of course to get more Ethereum because that Ethereum that you get, that’s seven percent a year. Let’s say you had 100 ETH, you’re getting 7 more ETH a year. With that Ethereum, you can take restake and earn more ethereum next year. It’s amazing”.
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