Lark Davis: Ethereum Massively Undervalued at Its Current Market Cap
According to Lark Davis, a popular cryptocurrency analyst and trader, Ethereum (ETH) is currently massively undervalued with the potential to explode in the coming years.
In a recent video, the analyst compares Ethereum to PayPal, pointing out that Ethereum is already outpacing the payment giant despite at the moment having smaller market cap.
“Now, PayPal is one of the world’s biggest online payment providers. So how does Ethereum stack up versus this payment giant?
Well currently, the market cap of PayPal [is] $344 billion. So Ethereum is worth $100 billion less than the PayPal company is worth. Now you might think, ‘Okay, that’s a pretty bad comparison. PayPal, it’s such a huge company. It does so much more business than Ethereum.’
Does it? Well, let’s dig into the facts here.”
Davis points out that in 2020, PayPal handled $936 billion in total transaction volume. But PayPal isn’t keeping pace compared to Ethereum, according to Davis. The second-largest cryptocurrency handled $1.5 trillion in total on-chain settlements in just the first quarter of 2021 alone, Davis further explained.
“So in just the first quarter, Ethereum did 50% more transactional volume than PayPal did in the entire year in 2020. Incredible. It’s no wonder PayPal is starting to sell Bitcoin and Ethereum to their clients because they’re gonna get Blockbustered if they don’t.
They can see where the future is heading, and it’s heading to online payments, which is exactly why PayPal has, of course, started to allow its customers to pay for things online using the Bitcoin and Ethereum in their PayPal accounts.
Smart move, PayPal, smart move. But that, of course, is a nice strategic move, but the numbers really speak for themselves about the dominance of Ethereum as an online settlement provider. It’s incredible. $1.5 trillion in Q1. And you know what’s the crazy thing? It’s been even more than that. That’s just Q1 we’re talking about.”
