Debate Over Ethereum's Valuation Sparks Discussion on Social Media

According to ChainCatcher, a heated debate has emerged on social media platform X regarding the valuation comparison between Ethereum and Amazon. Santiago, founder of Inversion Capital, argues that Ethereum's valuation is excessively high. He points out that Ethereum's price-to-sales ratio, with a valuation of $380 billion and annual revenue of $1 billion, is significantly higher than Amazon's, even during the internet bubble era when Amazon's ratio never exceeded 28 times. Santiago notes that Ethereum holders pay approximately 146 times more per dollar of revenue compared to Amazon investors at that time. He emphasizes that both companies and networks are priced based on economic benefits such as revenue and cash flow, rather than metrics like TVL, collateral assets, or settlement volume. SharpLink, a treasury company for Ethereum, counters that traditional valuation models are not applicable to Ethereum. They argue that while Amazon is a company, Ethereum is a network. Ethereum is positioned as the target network for the future migration of financial systems, with a potential market size far exceeding Amazon's $380 billion valuation. SharpLink suggests that a better way to assess Ethereum's value is by examining the scale of assets secured by its network. Historically, as more assets have moved on-chain and settled (with TVL growth), Ethereum's price has risen, although not always in perfect synchronization.