VanEck, a prominent asset manager, recently revealed its Ethereum (ETH) price projection, foreseeing a potential surge in the cryptocurrency’s value to as high as $154,000 by the year 2030. As per the company’s analysis, Ethereum is anticipated to generate substantial “free cash flows” amounting to around $66 billion, marking a remarkable growth of 487% from current levels.
VanEck’s report specifically highlights Ethereum’s success in the stablecoin sector. Over the past year, Ethereum’s blockchain facilitated a staggering $4 trillion in stablecoins, enabling additional transactions totaling $5.5 trillion in such tokens. Presently, the market capitalization of stablecoins based on Ethereum surpasses $91 billion.
The report draws a comparison between the revenue generated by Ethereum and that of major Web2 platforms, stating: “Ethereum ($3.4 billion) generates more revenue than Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion) […] Regarded as a dynamic economic platform, Ethereum can be likened to a ‘digital mall’, with user numbers growing by approximately 1,500% and revenue increasing at a Compound Annual Growth Rate (CAGR) of 161% since 2019.”
VanEck’s optimistic price outlook for Ethereum was influenced by the recent approval of Ethereum-based exchange-traded funds (ETF) in the United States. Furthermore, the company delved into the potential impact of artificial intelligence (AI) on Ethereum, integrating the AI market into its updated valuation model. The Ethereum network infrastructure is deemed crucial for the emerging AI economy, offering unique features essential for AI application development.
VanEck underscores that Ethereum’s influence extends beyond financial capabilities, enabling entrepreneurs to create more engaging and profitable applications due to its open-source and permissionless environment. The manager predicts that by 2030, 71% of Ethereum’s revenues will stem from financial businesses, with sectors like AI also contributing significantly to its revenue stream.
As of the latest data, the price of ETH stood at US$3,848.21, reflecting a 1% increase in the past 24 hours.
Please note: The opinions expressed in this article are for informational purposes only and should not be considered financial or investment advice. Investing or trading in cryptocurrencies carries inherent risks of financial loss.