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Crypto VC fund Archetype’s valuation model for ETH for this decade: a base forecast of $15,000 ETH

As the bear market continues to weigh on cryptocurrency portfolios, investors are trying to get a clearer picture of exactly what they’re betting on.

Written by Danny Sursock and General Partner Ash Egan, principal of Archetype

Source: Bankless

Fundamentals are always important.

As the bear market continues to weigh on cryptocurrency portfolios, investors are trying to get a clearer picture of exactly what they’re betting on.

We all know that there are many reasons to bet on Ethereum, but quantifying its current and future value is not always straightforward.

Bankless invited staff from investment firm Archetype to analyze their detailed model for valuing Ethereum and present in depth the model’s most conservative and optimistic predictions about the direction of the Ethereum network.

(Archetype is an early-stage crypto fund that invests in protocols and applications that enable a future based on smart contracts.) The original text has been edited for the sake of length and clarity. )

Valuation of a social supercomputer

The crypto industry is moving towards a future where technology, culture, and finance converge in an open digital world powered by blockchain.

Ethereum is the dominant blockchain because it achieves unparalleled symbiotic relationships in its vast ecosystem through several basic components.

1. First-mover advantage

There is no doubt that Satoshi Nakamoto made history with the launch of Bitcoin. Cryptography pioneers stepped up their work and launched peer-to-peer digital currencies linked to distributed ledgers, laying the initial foundation for a decentralized alternative economy.

Ethereum has taken its design a step further and become a general-purpose computer capable of supporting a wide range of different applications. As a result, Ethereum has been the main area where many crypto innovations take place.

2. Flywheels and network effects

Its early dominance resulted in a vibrant ecosystem of tools and applications, sustained a flywheel effect for technical talent, and broad Solidity fluency.

Blockchain…

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