Amid the recent surge in the Bitcoin and cryptocurrency market, Ethereum has been characterized as a dormant giant, not experiencing the same level of gains as its more established counterpart. Analysts and proponents contend that these assets are currently undervalued.

In the recent market rally initiated in mid-October, Ethereum saw an increase of around 30%. In contrast, Bitcoin experienced a more substantial rise of 55% during the same period, primarily fueled by excitement surrounding a potential spot ETF.

On December 4th, Ryan Sean Adams from Bankless expressed:

"The notion of ETH priced at $2,200 is almost humorous."

He elaborated:

"Participants in this market cycle are operating on a 'what if' scenario, overlooking Ethereum's robust fundamentals."

Adams highlighted that Ethereum presently generates $2.7 billion in annual profits and stands as the "sole revenue-generating chain." Additionally, it boasts a P/E ratio of 98, slightly surpassing Amazon's P/E ratio of 75.

The price-to-earnings ratio serves as a valuation tool comparing a company's current stock price to its earnings per share. In this context, Ethereum generates considerably more revenue than what is reflected in its current asset price.

Adams also pointed out the existence of entire chains acting as buyers of blockchain space, particularly second-layer solutions.

Key fundamentals contributing to Ethereum's potential include the deflationary emission of the cryptocurrency. As per ultrasound.money, the supply has diminished by 293,240 ETH since the merger in September 2022. #ETH