Ethereum Valuation

Definition ∞ Ethereum valuation refers to the process of determining the economic worth of the Ethereum network and its native asset, Ether. This involves analyzing various factors, including network utility, transaction volume, developer activity, and the total value locked in decentralized finance protocols. It provides a comprehensive assessment of Ethereum’s financial standing.
Context ∞ Ethereum valuation is a complex and frequently debated topic among investors and analysts, employing diverse methodologies ranging from traditional financial models to network-specific metrics. The ongoing transition to Ethereum 2.0 and its implications for staking rewards and network scalability significantly influence valuation perspectives. Regulatory clarity also plays a crucial role in shaping future valuation expectations.