Ethereum “fair value” calculation

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Ethereum “fair value” calculation

Hey everyone, big fan of Ethereum and quite excited to see how the techology evolves. I was wondering if anyone can provide more insight into the valuation of Ethereum. What initially caught my eye is this user calculating a "fair value" of ethereum:

Both valuations assume the same thing, the fee revenue growing.

Now Blockchain technology keeps developing and might come to a point where transactions are close to feeless (through sharding/sidechains). What impact would this have on the price of Ethereum? Would that not just mean the price will slowly go down till the average annual return for stakers is around 5%?

I definitely see a future where Ethereum is fully adopted throughout society, with it being the back back-bone for large centralized and decentralized financial institutions, supply chains and many other use-cases. However, a $2 FPT seems high and simply unsustainable. For example: Blockchain technology is actually adopted in quite a significant part of the food industry nowadays, but large food incumbents paying $2 per transaction to track a $10 bottle of wine is not viable.

Is my view too hollow? I find that the valuation of Bitcoin is more "up in the air" as the purpose is very different and has more of a comparison to gold. The tech of Ethereum might be wide-spread in the future and sure can save companies and transition society, but does that translate in the ethereum as a token being worth $X? Does anyone have any good recommended papers that discuss this topic?

submitted by /u/DTDstarcraft
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