Bankless Why $ETH is going to $3T | Ryan Allis
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Feb 2, 2022 
Ryan Allis, the managing partner at Heart Rithm and a seasoned entrepreneur, shares his insights on Ethereum's future. He discusses a discounted cash flow model suggesting ETH could reach $10,000 with a market cap of $4 trillion. Allis highlights Ethereum's unique revenue generation, low operational costs, and the potential impact of EIP-1559 on supply and demand. He also explores staking rewards and how the shift to a deflationary model might ramp up interest from traditional investors. It's a deep dive into the financial revolution brewing in the crypto space.
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Ether's Value Drivers
- Ryan Allis views Ether as the primary money of the internet, a token for the new digital age.
- Its value is driven by demand for use on the Ethereum blockchain.
DCF for Ether
- A discounted cash flow (DCF) analysis, typically used for valuing equities, can now be applied to Ether.
- This is due to EIP-1559 and the upcoming proof-of-stake merge, introducing mechanisms similar to stock buybacks and dividends.
Unique Aspects of Ether
- Ethereum has no operational costs, unlike traditional companies, resulting in 100% of revenue being profit.
- It also boasts a significantly higher growth rate, exceeding 400% year over year.