Ethereum News Today: Institutional Buyers Snag 3% of Ethereum Supply as Valuation Models Signal 57% Undervaluation

Ethereum's price has held above $2,900, supported by $96.67 million in net inflows into U.S. spot Ethereum ETFs on November 24, with BlackRock's ETF contributing $92.6 million. This marked the first inflow for BlackRock's Ethereum ETF in two weeks, ending an eight-day streak of outflows. Meanwhile, institutional investors like BitMine Immersion Technologies (NYSE: BMNR) have aggressively accumulated Ethereum, adding 69,822 ETH worth over $200 million, bringing their total holdings to 3.63 million ETH—roughly 3% of the total supply according to data. The firm, chaired by Fundstrat's Tom Lee, has adopted a "dip-buying" strategy amid a broader market pullback, aligning with Lee's bullish thesis that Ethereum is entering a "supercycle" driven by stablecoin growth, real-world asset (RWA) tokenization, and institutional adoption according to analysis.

Simon Kim, founder of venture capital firm Hashed, has further reinforced the case for Ethereum's undervaluation through a real-time dashboard that aggregates eight valuation models. The tool estimates Ethereum's fair value at $4,747.40, implying a 56.9% undervaluation compared to its current price of $3,022.30 according to the dashboard. The models range from traditional finance metrics like discounted cash flow (DCF) and price-to-earnings (P/E) ratios to crypto-native frameworks such as Metcalfe's Law and Total Value Locked (TVL) multiples. While the DCF model suggests a 200% undervaluation at $9,067.80 and Metcalfe's Law indicates a 217% undervaluation at $9,583.60, the P/E ratio model paradoxically shows Ethereum as 70.2% overvalued at $899.20 according to analysis. A composite fair value, weighted by model reliability, yields five "buy" signals, one "hold," and two "sell" ratings, underscoring the complexity of valuing a nascent asset class.

Ethereum's ecosystem is also showing signs of robust growth, with Layer-2 networks now processing 58.5% of all transactions in the ecosystem.

The surge in Layer-2 activity—led by Arbitrum, Optimism, and Base—has reduced fees and increased throughput, positioning Ethereum as a scalable infrastructure for decentralized applications. This momentum is set to accelerate with the upcoming Fusaka upgrade on December 3, 2025, which aims to enhance rollup efficiency according to market analysis. Analysts note that while Ethereum's price remains in consolidation near $3,078, the broader fundamentals—including rising staking yields, surging developer activity, and a 36.7% year-over-year increase in Layer-2 TVL to $43.3 billion—suggest a potential breakout according to analysts.

Market dynamics remain mixed. Federal Reserve rate cut odds have spiked to over 80% for the December meeting, lifting investor sentiment. However, Ethereum futures saw net outflows of $4.31 billion over seven days, though inflows returned with $735.46 million in the past three days according to data. Short liquidations totaled $51.3 million in the last 24 hours, indicating defensive positioning. Despite these pressures, Ethereum's market cap of $365.4 billion remains 38.8% below its all-time high of $4,946.10 according to valuation analysis.

Analysts like Tom Lee and Fundstrat's Mark Newton anticipate a price rebound, with Lee forecasting a $7,500 target by year-end and a long-term vision of $60,000 by 2030 according to market projections. These predictions hinge on macroeconomic factors, including the GENIUS Act's potential to boost stablecoin adoption, and structural upgrades like Fusaka. Meanwhile, Grayscale's recent launch of a spot Dogecoin ETF (GDOG) on NYSE Arca highlights the growing integration of cryptocurrencies into traditional finance, a trend that could amplify Ethereum's institutional appeal.