Since launching in 2015, Ethereum has garnered significant interest as the second-largest blockchain network. But even as the network has matured into a robust settlement layer for billions of dollars of peer-to-peer value transfer, investors often find it difficult to identify the investment case.

Ethereum similarly facilitates verification, but of a wider set of logic and information. In other words, Ethereum’s robust network ensures that applications run according to the logic that is encoded, without the need for third parties or without the possibility of interference. Ethereum creates an environment of trust, which is historically a prerequisite for prosperous trade.

With the growing activity on Ethereum, investors wonder about the investment case and how to value the native asset of the Ethereum network, Ether. In August, we released a report on Valuing Bitcoin to help investors understand the Bitcoin investment case and how they can monitor important underlying metrics. In this paper, our Director of Research, Phil Bonello, outlines important considerations for valuing Ether. But while Bitcoin is widely known as digital gold, Ether’s designation is less clear. We explore three approaches and relevant metrics associated with each: Ether as money, Ether as a consumable commodity, and Ether as an interest-bearing asset.

Learn more about assessing Ether’s value through multiple frameworks and metrics by downloading the full report here:

This article is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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