SharpLink: Ethereum's potential market size far exceeds Amazon's valuation of $38 billion

According to ChainCatcher, a heated discussion has arisen on X regarding the valuation comparison between Ethereum and Amazon. Santiago, founder of Inversion Capital, believes that Ethereum is overvalued. He pointed out that ETH's price-to-sales ratio (valuation of $38 billion, annual revenue of $1 billion) is much higher than Amazon's, and even during the internet bubble, Amazon's price-to-sales ratio never exceeded 28 times. Ethereum holders are paying about 146 times more per $1 of revenue than Amazon investors did back then. He believes Amazon is also a successful network. Whether it is a company or a network, pricing depends on the economic benefits generated (revenue and cash flow), while TVL, collateralized assets, or settlement volume are not revenue.

Ethereum treasury company SharpLink 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 far greater than Amazon's when it was valued at $38 billion. A better way to measure Ethereum's value is to look at the scale of assets secured by its network. Historically, as more and more assets have been transferred on-chain and settled (TVL growth), Ethereum's price has also risen (though not always in perfect sync).