DeFi Dad posts William Mougayar’s new work on Ethereum’s elementary mispricing. The report claims that the market has developed Ethereum as a business enterprise. Traders worth ETFs based mostly on charges and returns. Moogayal locations this lens in a damaging mild, saying that Ethereum’s position as a public good is undervalued. He likens Ethereum to the bottom layer of the Web, resembling TCP/IP. These plans generated enormous financial revenues with out direct advantages. Ether works equally. The community powers trillions of actions in stablecoins, funds, DeFi, and tokenized belongings. In line with the report, the worth of ETH is barely a fraction of this worth. At present, market capitalization numbers don’t point out the general influence of the community. This hole is recognized within the put up and requires a brand new analysis framework.
New valuation mannequin has trillions of {dollars} of intrinsic worth
This report presents a three-part analysis mannequin. Quantify captured worth, capitalized financial flows, and belief surpluses. The market capitalization of ETH, Layer 2 networks, and DeFi protocols has captured worth. This group is at present value about $0.6-0.9 trillion. The financial flows that rely upon Ethereum are capitalized and are such that they embrace GDP-like actions. This consists of the amount of stablecoin funds, DeFi transactions, and tokenized transactions.
These flows exceed 50 trillion every year. Utilizing conservative multiples, the valuation is between 0.3 trillion and three trillion. Belief surplus consists of decreased fraud, resistance to censorship, and financial savings from intermediaries. These advantages add as much as 0.15-0.6 trillion. The hybrid mannequin primarily values Ethereum within the vary of two trillion to six trillion. As of December 2025, ETH has a market worth of almost 400 billion. The report notes that this disconnect is basically underestimated.
Ethernet methods because the world’s belief in finance
In line with the report, Ethereum has been known as the worldwide belief underlayer of digital finance. Networks safe worth. Implement the foundations. It’s a host of worldwide purposes and depends on banks, fintechs, companies, and governments. This report compares the early Web. TCP/IP was the powerhouse of world communications. It has expanded to trillions of {dollars} in financial influence. The identical is true for Ethereum. Tokenization will develop.
Adoption of secure cash is rising. Actual-world belongings transfer to the blockchain. Demand from institutional traders is rising all over the world. The mannequin predicts a price of between 10 trillion and 20 trillion over the subsequent three years (2035). In line with McKinsey and the World Financial institution, the expansion of digital infrastructure is historic. The report claims that Ethereum can be on the identical curve. This put up reveals that ETH’s long-term utility is optimistic. The neighborhood believes this research is a wake-up name to the market’s repute for base layers.
