ETH valuation questioned with a price-to-sales ratio as high as 380: Is it a bubble or a paradigm shift?

Question

[Bitpush] The community is in an uproar lately—Is ETH really worth its current price?

A fund founder, Santiago, fired the first shot: Look at the price-to-sales ratio! ETH is currently valued at $380 billion, but its annual revenue is only $1 billion, which means a price-to-sales ratio of 380x. Even at the peak of the dot-com bubble, Amazon’s price-to-sales ratio never exceeded 28x. In other words, ETH holders are paying 146 times more for every $1 of earnings compared to Amazon investors back then. He emphasized one thing—Amazon was also a successful network, but in the end, valuation still comes down to hard indicators like revenue and cash flow. Metrics like TVL, collateralized assets, or settlement volume aren’t real, tangible income.

But SharpLink (an Ethereum treasury company) completely disagrees with this logic. They counter: You’re applying a company valuation model to a network? That’s not the same thing at all! ETH is the infrastructure that the future financial system will migrate to, and its potential market is much bigger than Amazon’s ever was. The real metric to look at is the scale of assets secured by the network—historical data shows that as on-chain assets (TVL) increase, ETH’s price rises as well. While they’re not perfectly synchronized, the trend is clear.

Both sides have their arguments. Which side are you on?

AirdropHarvester · Accepted Answer

Haha, Santiago's argument is so outdated, always using the Amazon analogy. How can you possibly apply company valuation models to Web3?

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Wait, a price-to-sales ratio of 380? If you really calculate it by traditional finance standards, that's just absurd... But the problem is, ETH isn't even a company in the first place.

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Here we go again, every time someone brings up the internet bubble, and what happened? Already financially free a long time ago.

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146x 😅—I just had to laugh when I saw that number. So all three of us holding coins are just suckers?

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That's right, who can say ETH doesn't have hard cash flow metrics? Are you blind to the staking yields?

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This kind of debate happens every month, and yet ETH just keeps going up.

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I just want to know when Santiago will change his tune. Anyway, I sleep soundly holding my coins.

MEVSandwichMaker · Answer

Bro, I'm tired of hearing this Amazon comparison. Can't online assets and companies really be valued the same way? Could Santiago's logic have applied to Facebook back in 2010?

ZeroRushCaptain · Answer

380x price-to-sales ratio? Dude, as soon as I saw that number, I knew it was time to buy the dip. The strongest contrarian indicator in history is right on time.

StablecoinAnxiety · Answer

A price-to-sales ratio of 380? Dude, that number is insane, but using company valuation metrics for networks is just absurd.

There's nothing wrong with talking about cash flow, but crypto networks and Amazon are two completely different things... If you're still hung up on this, maybe it's time to take a step back.

How do you even value ETH? Honestly, I'm confused too, but comparing it to the dot-com bubble just feels forced.

After all this time, we're still repeating the same arguments—maybe they're already outdated?

In the end, it's really a matter of belief: hard-data fans vs. futurists, and neither side can convince the other.