VanEck, a prominent asset manager, has recently unveiled its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to $154,000 by 2030. The company’s report predicts that Ethereum will generate around $66 billion in “free cash flows,” representing a remarkable 487% increase from current levels.
VanEck’s report specifically emphasizes Ethereum’s performance in the stablecoin sector. Over the past year, Ethereum’s blockchain has facilitated the movement of an impressive $4 trillion in stablecoins, enabling transactions totaling $5.5 trillion in such tokens. Currently, the market capitalization of stablecoins based on Ethereum exceeds $91 billion.
The report draws a comparison between the revenue generated by Ethereum and that of major Web2 platforms, highlighting that Ethereum’s revenue of $3.4 billion surpasses that of platforms like Etsy, Twitch, and Roblox. Described as a dynamic economic platform, Ethereum is likened to a ‘digital mall,’ with user numbers growing by approximately 1,500% and revenue increasing at a CAGR of 161% since 2019.
VanEck’s bullish price outlook for Ethereum is further supported by the recent approval of Ethereum-based exchange-traded funds (ETF) in the US. The company also considers the potential impact of artificial intelligence (AI) on Ethereum, incorporating the AI market into its valuation model. The Ethereum network is seen as crucial to the emerging AI economy, offering unique properties essential for AI application development.
VanEck stresses that Ethereum’s influence extends beyond financial realms, enabling entrepreneurs to create more engaging and profitable applications in its open source and permissionless environment. The company predicts that 71% of Ethereum’s revenues will come from financial businesses by 2030, with sectors like AI also playing a significant role.
In terms of price targets, VanEck presents various scenarios for Ethereum in 2030, ranging from a baseline case to a bullish and bearish case. The estimated revenue for 2030 varies based on these scenarios, with the potential for significant growth in the coming years.
As of the time of publication, the price of ETH stands at $3,848.21, reflecting a 1% increase in the last 24 hours.
Disclaimer:
The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries inherent risks of financial loss.
Editor’s Choice:
Optimism grows among Ethereum traders following ETF approval
Vitalik Buterin critiques the trend of celebrity memecoins.