Ethereum market cap at $252B despite 57% drop

Ethereum (CRYPTO:ETH) remains one of the most valuable digital assets, holding a market capitalisation of approximately $252 billion despite trading 57% below its all-time high, according to CoinMarketCap data.

Despite this, Ethereum’s valuation still surpasses that of major corporations such as Toyota, which has a market cap of $250 billion, and the global platinum market, valued at approximately $245 billion.

“Ethereum is about the future, about new financial technologies and solutions,” said Alex Obchakevich, founder of Obchakevich Research.

He noted that Ethereum’s appeal to younger investors differentiates it from traditional assets.

However, some experts caution against comparing Ethereum’s value directly to major corporations.

Flavio Bianchi, a Polkadot ambassador, emphasised that Ethereum “isn’t a business” but an infrastructure enabling decentralised transactions and asset issuance.

Ethereum’s transition to a proof-of-stake model has influenced its valuation.

Obchakevich pointed out that the shift reinforced its status as a deflationary asset, though data from Ultra Sound Money indicates Ethereum has recently become inflationary again, with a 0.73% annual inflation rate over the past 30 days.

The network’s deflationary status depends on transaction fees and the volume of ETH burned.

On March 23, daily fees on Ethereum dropped to approximately $337,000, the lowest since June 2020, according to IntoTheBlock data.

Ethereum’s market capitalisation also exceeds the gross domestic product (GDP) of Greece, currently estimated at $243.5 billion.

Some analysts view this as a sign of legitimacy, highlighting Ethereum’s role in smart contracts and decentralised finance, which has a total value locked of over $124 billion.

At the time of reporting, the Ethereum (ETH) price was $2,045.87.