Ethereum (CRYPTO: ETH) is “wildly undervalued,” according to Real Vision CEO Raoul Pal, even as he admits to also holding Bitcoin (CRYPTO: BTC), Solana (CRYPTO: SOL) and Sui (CRYPTO: SUI).
Why Pal Calls Ethereum Undervalued
Pal on Thursday told the When Shift Happens podcast that investors value networks the wrong way, focusing on cash flow when that’s not what actually makes a network worth something.
He framed Ethereum’s worth through a simple test: if the network shut off tomorrow, it would erase 70% to 76% of all stablecoins, a similar share of DeFi activity, most real-world assets on-chain, the entire digital art market, and every Layer – built on top of it.
That’s at least $1 trillion to $1.5 trillion in destroyed value, which Pal says the market hasn’t priced in.
Pal’s strategy hasn’t changed in two years, he said: buy when an asset falls two standard deviations below its long-term trend, then do nothing.
He pointed to 2022 as proof, when he bought Solana and Ethereum near their lows and recovered to all-time highs well before the broader market did.
He warned against the more common approach of selling near the top and trying to buy back lower.
“You just can’t do it,” he said, calling it psychologically impossible, since investors who sell stay too afraid of another leg down to buy back at scale.
His average Sui entry sits near $1.70, leaving the position underwater at current prices, though he remains committed to the thesis.
He points to Sui’s “economic density,” the value locked per active user, as evidence the network held up better than most during this year’s pullback, noting that only Ethereum, Solana and Sui retained that density after broader markets fell.
He applied the same buy-the-dip discipline to Zcash (CRYPTO: ZEC), picking up shares near $200 to $300, including during a flash crash tied to a since-debunked supply scare.
His reasoning centers on growing demand for privacy, which he says has accelerated since governments began seizing Bitcoin and other assets from sanctioned parties.
Why Pal Sees a Bigger Liquidity Shift Coming
Crypto and tech have underperformed relative to money supply growth over the past year, he observed, because most new liquidity flowed into AI infrastructure instead.
Pal expects that imbalance to reverse as rate cuts and renewed capital expenditure push liquidity back toward crypto, which he argues remains cheap versus both gold and the Nasdaq historically.
The former Goldman Sachs executive expects an “economic singularity” by 2030, when AI agents reshape wages, productivity and capital markets faster than regulators or institutions can adapt.
He called the next four years a narrow window to build wealth before that disruption plays out, pointing to AI agent growth and rising bond yields as early signs the shift is already underway.
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