SharpLink: Ethereum's Potential Market Size Far Exceeds Amazon's Valuation When It Was $380 Billion

Mars Finance reports that 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 $380 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 28x. The price that Ethereum holders pay for every $1 of revenue is about 146 times what Amazon investors paid back then. He considers Amazon to be a successful network as well. Whether it’s a company or a network, its pricing depends on the economic benefits it generates (revenue and cash flow), while TVL, collateralized assets, or settlement volume do not constitute revenue.

Ethereum treasury company SharpLink, on the other hand, 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 market size when it was valued at $380 billion. A better way to measure Ethereum’s value is to look at the scale of assets secured by its network. Historically, as more assets migrated on-chain and were settled (with TVL growth), Ethereum’s price also increased (though not completely synchronously).