Ethereum, SushiSwap, or Uniswap – Which one is the most undervalued?


In the unpredictable world of cryptocurrencies, where a price increase of more than 50 percent in a single day is business as usual, it can be challenging for any investor to precisely define “value.” Having said that, there are a few metrics that assert they can make this process easier.

Token Terminal, a provider of financial metrics, has recently made public a report that ranks the protocols in the market according to their Price to Sales (P/S) ratio. The report identifies the top-performing protocols in the market. The market capitalization of a protocol is compared to its revenue using the P/S ratio. In this case, a low ratio would indicate that the protocol is undervalued, and the opposite would be true.

SushiSwapSushiSwap was the protocol with the worst ranking, so according to this metric, it is the most undervalued protocol. Uniswap and Maker came in second and third, respectively.

After increasing the stability fees for DAI, it is interesting to note that the data also suggested that over the course of the past few months, Maker has gone from having a high P/S ratio to being third on the list. This change occurred after the company increased its fees for maintaining DAI’s stability.

During the third and fourth quarters of 2020, Uniswap’s daily revenue was consistently high, which meant that shifts in the company’s market cap were the primary cause of changes in the P/S ratio.


The market capitalization and price-to-sales ratio were plotted on the accompanying chart, which also highlighted the fact that there is a direct correlation between the two metrics. Since the introduction of the $UNI token, this would seem to imply that Uniswap’s revenues have remained at a high level throughout the entire time.

On the opposite end of the spectrum was Synthetix, which had a P/S ratio that was greater than 70 percent. After the launch of Synthetix v2, the protocol began trading with a market capitalization that was relatively low, and it also had a price-to-sales ratio that was relatively high. This caused the number to be relatively high. In spite of the fact that initial revenue was rather meagre, it has gradually increased ever since.

Even though this metric is most appropriate for analysing early stage protocols, it is still worthwhile to investigate Ethereum’s performance because it is the platform on which the majority of the activity on DeFi takes place.


According to the charts that were just presented, Ethereum’s price to supply ratio has experienced a precipitous decline over the course of the past few months, and it is now even comparable to some of the most prominent DeFi protocols on the market. Additionally, daily revenues have been consistently high from the second quarter of 2020 through the fourth quarter of 2020, something that suggests significant growth as of late.

What exactly does this involve? The data would seem to suggest that the market capitalization of Ethereum has not yet caught up with the growth that has occurred in the Ethereum ecosystem.