William Mougayar Estimates Ethereum Supports $5.7 Trillion in Value

Early Ethereum investor William Mougayar estimates Ethereum supports about $5.7 trillion in economic value, a framework he uses to compare Ether (ETH) with the activity and assets built around the network.

Within the model, ETH’s roughly $246 billion market capitalization amounts to 4.3% of the total estimate. Mougayar’s second edition of an annual report on Ethereum as infrastructure divides the figure into ecosystem, flow and trust-surplus value.

The ecosystem portion is about $127 billion, covering assets and companies built around Ethereum. Flow value is estimated at $3 trillion and is tied mainly to stablecoins and roughly $70 trillion in annual flows that depend on the network. Mougayar assigns another $2.6 trillion to “trust surplus,” an estimate of savings in custody, reconciliation, settlement delays and counterparty risk compared with traditional systems.

To calculate a value for ETH, Mougayar uses a comparison with internet companies, which account for 10% to 20% of the economic value they create. Applying the 15% midpoint yields an ETH valuation of about $7,000, or roughly 3.5 times its price at the time of the estimate. Mougayar says that figure is not a price target or forecast.