Real Vision CEO Raoul Pal called Ethereum "wildly undervalued" in a Thursday appearance on the When Shift Happens podcast. Pal also holds Bitcoin, Solana and Sui. Pal argued that investors value networks incorrectly by focusing on cash flow rather than what actually gives a network value.
Pal said shutting down Ethereum tomorrow would erase 70% to 76% of all stablecoins and a similar share of decentralized finance activity. Pal said an Ethereum shutdown would also erase most real-world assets on-chain and the entire digital art market. Pal estimated the destroyed value at at least $1 trillion to $1.5 trillion. Pal said the market has not priced in that value.
Pal said his strategy has remained unchanged for two years: buy an asset when its price falls two standard deviations below its long-term trend, then hold. Pal cited purchases of Solana and Ethereum near their 2022 lows as evidence supporting that strategy. Pal warned against selling near the top and trying to buy back at lower prices. Pal called that approach psychologically impossible because investors who sell remain too afraid of further declines to buy back at scale.
Pal's average Sui entry price is near $1.70, leaving the position at a loss at current prices. However, Pal remains committed to the investment thesis. Pal cited Sui's "economic density," defined as value locked per active user, as evidence that Sui held up better than most networks during this year's pullback. Pal said only Ethereum, Solana and Sui retained that density after broader markets fell.
Pal also bought Zcash shares near $200 to $300, including during a flash crash tied to a since-debunked supply scare. Pal based those purchases on growing demand for privacy. Pal said privacy demand has accelerated since governments began seizing Bitcoin and other assets from sanctioned parties.
Pal said crypto and technology have underperformed relative to money supply growth over the past year because most new liquidity flowed into AI infrastructure. Pal expects that imbalance to reverse as rate cuts and renewed capital expenditure redirect liquidity toward crypto. Pal argued that crypto remains historically cheap relative to both gold and the Nasdaq.
Pal, a former Goldman Sachs executive, expects an "economic singularity" by 2030. Pal expects AI agents to reshape wages, productivity and capital markets faster than regulators or institutions can adapt. Pal described the next four years as a narrow window to build wealth before that disruption. Pal cited AI agent growth and rising bond yields as early signs that the shift is already underway.
Raoul Pal Calls Ethereum 'Wildly Undervalued' Amid Crypto Market Analysis
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Summary
Raoul Pal, CEO of Real Vision, called Ethereum "wildly undervalued" in a recent podcast, noting investors overlook its utility. He warned that an Ethereum shutdown could slash $1 trillion to $1.5 trillion in value, impacting stablecoins and DeFi. Ethereum price today reflects this underpricing, he argued. Pal added Ethereum and Solana to his portfolio near 2022 lows. He remains bullish on Sui and Zcash, citing privacy and economic density as key drivers.
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