Dragonfly managing accomplice Haseeb Qureshi has sharpened his protection of Ethereum\u2019s valuation, arguing that critics are utilizing the incorrect monetary framework and that ETH needs to be analyzed extra like an early-stage Amazon than a mature \u201cvalue\u201d inventory.<\/p>\n
Speaking on the Milk Road Show on 9 December 2025, Qureshi revisited his now-viral valuation conflict with investor Santiago \u201cSanti\u201d Santos, hosted by ThreadGuy, which reignited the controversy over the right way to worth layer 1 blockchains. At the core of Qureshi\u2019s thesis is an easy however controversial declare: charge income on Ethereum is successfully pure margin and needs to be handled as revenue, not as \u201crevenue\u201d within the conventional company sense.<\/p>\n
\u201cBlockchains don\u2019t have revenue. They have profit,\u201d he stated. \u201cWhen chains charge fees, that\u2019s profit. There\u2019s no expenses for a chain. Chains don\u2019t pay expenses, right? There\u2019s no AWS hosting<\/a> cost for Ethereum.\u201d<\/p>\n Santos had argued that Ethereum is buying and selling at \u201c300 plus\u201d instances gross sales, calling these price-to-sales (P\/S) ranges \u201cembarrassing\u201d relative to conventional firms and suggesting valuations are \u201cway ahead of their skis.\u201d Qureshi didn’t contest the magnitude of the multiples however rejected P\/S as the appropriate lens.<\/p>\n \u201cHe was insisting in the debate that the right way to look at these things is price of sales. So if you look at price sales for Ethereum, it\u2019s something like 380. If you look at Amazon, I think Amazon topped out at price of sales of 42. And this was during the bubble,\u201d Qureshi stated.<\/p>\n He countered that for a blockchain, what fairness traders would name \u201csales\u201d is nearer to the GDP or GMV of the on-chain economic system, which isn’t immediately measured on the protocol degree. The solely clear, observable line is charge earnings, which he treats as web earnings.<\/p>\n \u201cThe sales in some sense is like the GDP of the blockchain which we\u2019re not measuring,\u201d he argued. \u201cThe right thing to understand for a chain is the profit\u2026 The right thing to understand is what is the profit of Ethereum relative to the profit of Amazon.\u201d<\/p>\n That opens the door to the Amazon analogy. Qureshi emphasised that Amazon delayed profitability for nearly 20 years to prioritize progress, but public markets nonetheless assigned it extraordinarily excessive earnings multiples.<\/p>\n \u201cAmazon literally made no profit, no profit until basically about 20 years in as a business,\u201d he stated. \u201cIn the year I think it was 2013\u2026 Amazon had a PE ratio\u2026 over 600 whereas today the PE ratio of Ethereum of course is something like 380.\u201d<\/p>\n Because Ethereum\u2019s P\/S and P\/E converge underneath his \u201cfees = profit\u201d assumption, Qureshi\u2019s argument is that traders ought to evaluate ETH\u2019s 300\u2013380x a number of to Amazon\u2019s P\/E historical past, to not its a lot decrease P\/S, if they’re going to use a single headline ratio in any respect.<\/p>\n The broader context, he pressured, is that Ethereum and different L1s are nonetheless in an exponential build-out part, extra akin to early web or e-commerce infrastructure than to late-cycle dividend payers.<\/p>\n \u201cThis technology has been getting bigger and bigger over time. It\u2019s gobbling up the entire world of finance from where it started,\u201d he stated, referencing his essay \u201cIn Defense of Exponentials.\u201d \u201cNone of [these technologies] started printing a bunch of profit immediately in the first five or even 10 years.\u201d<\/p>\n Despite uneven worth motion and underperformance of altcoins versus AI equities and gold, Qureshi stated his conviction within the long-dated Ethereum thesis has elevated, not weakened, by the general public debate.<\/p>\n \u201cIf anything, I have become more confident in my view,\u201d he stated, including that nothing materials had modified within the final months to justify a serious portfolio rethink. \u201cWhat exactly has changed in the last 2 months between, you know, ETH going to like $4,800 and ETH being at $3,000? The answer is basically nothing.\u201d<\/p>\n Shared some post-debate reflections on my L1 debate with @santiagoroel<\/a>, my rebuttal in opposition to the \u201ccrypto is all a big casino\u201d doomers, and the place I believe we’re within the crypto macro cycle \ud83d\udc47 https:\/\/t.co\/9uMJFuLVrX<\/a><\/p>\n \u2014 Haseeb \uff1e|\uff1c (@hosseeb) December 9, 2025<\/a><\/p>\n<\/blockquote>\n For Qureshi, a real repositioning would require a transparent invalidation of core assumptions\u2014reminiscent of a quantum break<\/a> of cryptography or a structural collapse in on-chain stablecoin demand<\/a>. Short-term swings, in his view, are merely the pendulum of sentiment shifting round a still-fixed basic anchor.<\/p>\n His message to skeptics is that if markets tolerated Amazon at 600x earnings whereas it scaled right into a dominant platform, dismissing Ethereum at roughly 300\u2013380x on a \u201ctoo high on P\/S\u201d argument alone is analytically inconsistent.<\/p>\n At press time, ETH traded at $3,325.<\/p>\n Featured picture created with DALL.E, chart from TradingView.com<\/p>\n<\/div>\nQureshi Pushes Back On Claims Ethereum Is Overvalued<\/h2>\n
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