Raoul Pal on Ethereum Valuation: Assets Secured, Not Cash Flow
Raoul Pal argues Ethereum's worth equals the stablecoins, DeFi, L2s and NFTs it secures, driven by intellectual density and developer concentration rather than cash-flow metrics.
Raoul Pal, founder and CEO of Global Macro Investor, described Ethereum's value as the total of stablecoins, DeFi applications, layer-2 networks and NFTs that would cease to function if the base chain were shut down.
Pal said layer-1 networks draw assets, capital and liquidity through intellectual density. He noted that Ethereum maintains the largest developer base, strong programmability and a complete ecosystem.
He dismissed discounted-cash-flow arguments as meaningless, stating that valuation targets everything the chain secures rather than any cash-flow metric.
Pal added that value will accumulate on base layers as both the human economy and a new agent economy move on-chain.
What remains unknown
No quantified valuation ranges, adoption timelines or implementation details were provided.