Crypto vs. Traditional Valuation Metrics
When evaluating cryptocurrencies, there is no single metric to measure their potential, unlike traditional investments, where earnings, sales, and market share are commonly used. Ether functions as both a store of value and the token required for accessing the Ethereum network. This is why market capitalization, though not perfect, is a reliable way to compare cryptocurrencies to traditional assets.
The Importance of Coin Quantity in Market Cap
Market capitalization works for all assets, including commodities, stocks, and mutual funds. The number of outstanding coins is just as significant as the unitary price. Cardano, for instance, is priced under $1, but its market cap is over $26 billion. Meanwhile, Cover Protocol's unitary price is close to $1,600, yet its market capitalization is less than $100 million.

Ethereum's Market Cap Comparison to Major Companies
Ethereum's market cap has surpassed that of Novartis, AT&T, and Cisco, as reported by 8marketcap.com. Comparing Ethereum's market cap with these companies is reasonable, as potential investors may choose one.
Decentralization Offers a Higher Valuation
Compared to centralized companies, decentralized protocols like Ethereum are more insulated from risks such as additional shares, taxes, liabilities, and government control. This factor justifies Ethereum's higher valuation.