SharpLink: Ethereum's Potential Market Size Far Exceeds Amazon's Valuation When It Was $380 Billion

ChainCatcher news: The topic of comparing the valuations of Ethereum and Amazon has sparked heated discussions on X. Santiago, founder of Inversion Capital, believes that Ethereum is overvalued. He stated that ETH’s price-to-sales ratio (valuation of $380 billion, annual revenue of $1 billion) is much higher than Amazon’s—even during the dot-com bubble, Amazon’s price-to-sales ratio never exceeded 28 times. The price Ethereum holders pay for each $1 of revenue is about 146 times what Amazon investors paid back then. He argues that Amazon is also a successful network. Whether it’s a company or a network, its pricing depends on the economic benefits it generates (revenue and cash flow), while TVL, collateralized assets, or settlement volume are not revenue.

Ethereum treasury company SharpLink, on the other hand, stated that traditional valuation models do not apply to Ethereum: Amazon is a company, while Ethereum is a network. Ethereum is the target network for the migration of the future financial system, and its potential market size is much larger than Amazon’s when it was valued at $380 billion. A better way to measure Ethereum’s value is to look at the scale of assets secured by its network. Historically, as more assets have migrated on-chain and been settled (TVL growth), Ethereum’s price has risen accordingly (though not entirely in sync).