Dragonfly managing accomplice Haseeb Qureshi has sharpened his protection of Ethereum’s valuation, arguing that critics are utilizing the improper monetary framework and that ETH needs to be analyzed extra like an early-stage Amazon than a mature “worth” inventory.
Talking on the Milk Highway Present on 9 December 2025, Qureshi revisited his now-viral valuation conflict with investor Santiago “Santi” Santos, hosted by ThreadGuy, which reignited the talk over the way to value layer 1 blockchains. On the core of Qureshi’s thesis is a straightforward however controversial declare: charge income on Ethereum is successfully pure margin and needs to be handled as revenue, not as “income” within the conventional company sense.
“Blockchains don’t have income. They’ve revenue,” he stated. “When chains cost charges, that’s revenue. There’s no bills for a series. Chains don’t pay bills, proper? There’s no AWS internet hosting price for Ethereum.”
Qureshi Pushes Again On Claims Ethereum Is Overvalued
Santos had argued that Ethereum is buying and selling at “300 plus” occasions gross sales, calling these price-to-sales (P/S) ranges “embarrassing” relative to conventional corporations and suggesting valuations are “method forward of their skis.” Qureshi didn’t contest the magnitude of the multiples however rejected P/S as the suitable lens.
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“He was insisting within the debate that the suitable method to have a look at these items is value of gross sales. So should you take a look at value gross sales for Ethereum, it’s one thing like 380. In the event you take a look at Amazon, I feel Amazon topped out at value of gross sales of 42. And this was throughout the bubble,” Qureshi stated.
He countered that for a blockchain, what fairness traders would name “gross sales” is nearer to the GDP or GMV of the on-chain economic system, which isn’t instantly measured on the protocol degree. The one clear, observable line is charge earnings, which he treats as web earnings.
“The gross sales in some sense is just like the GDP of the blockchain which we’re not measuring,” he argued. “The fitting factor to grasp for a series is the revenue… The fitting factor to grasp is what’s the revenue of Ethereum relative to the revenue of Amazon.”
That opens the door to the Amazon analogy. Qureshi emphasised that Amazon delayed profitability for nearly twenty years to prioritize development, but public markets nonetheless assigned it extraordinarily excessive earnings multiples.
“Amazon actually made no revenue, no revenue till mainly about 20 years in as a enterprise,” he stated. “Within the yr I feel it was 2013… Amazon had a PE ratio… over 600 whereas at this time the PE ratio of Ethereum after all is one thing like 380.”
As a result of Ethereum’s P/S and P/E converge underneath his “charges = revenue” assumption, Qureshi’s argument is that traders ought to examine ETH’s 300–380x a number of to Amazon’s P/E historical past, to not its a lot decrease P/S, if they will use a single headline ratio in any respect.
The broader context, he confused, is that Ethereum and different L1s are nonetheless in an exponential build-out section, extra akin to early web or e-commerce infrastructure than to late-cycle dividend payers.
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“This expertise has been getting larger and larger over time. It’s gobbling up all the world of finance from the place it began,” he stated, referencing his essay “In Protection of Exponentials.” “None of [these technologies] began printing a bunch of revenue instantly within the first 5 and even 10 years.”
Regardless of uneven value 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 way of the general public debate.
“If something, I’ve turn into extra assured for my part,” he stated, including that nothing materials had modified within the final months to justify a serious portfolio rethink. “What precisely has modified within the final 2 months between, you realize, ETH going to love $4,800 and ETH being at $3,000? The reply is mainly nothing.”
Shared some post-debate reflections on my L1 debate with @santiagoroel, my rebuttal towards the “crypto is all an enormous on line casino” doomers, and the place I feel we’re within the crypto macro cycle 👇 https://t.co/9uMJFuLVrX
— Haseeb ＞|＜ (@hosseeb) December 9, 2025
For Qureshi, a real repositioning would require a transparent invalidation of core assumptions—comparable to a quantum break of cryptography or a structural collapse in on-chain stablecoin demand. Quick-term swings, in his view, are merely the pendulum of sentiment shifting round a still-fixed elementary anchor.
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 300–380x on a “too excessive on P/S” argument alone is analytically inconsistent.
At press time, ETH traded at $3,325.
Featured picture created with DALL.E, chart from TradingView.com
