VanEck, a prominent asset management firm, recently unveiled its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to as high as $154,000 by 2030. According to the company’s analysis, Ethereum is anticipated to generate “free cash flows” reaching up to $66 billion, indicating a remarkable 487% growth from current levels.
The report from VanEck particularly highlights Ethereum’s performance in the stablecoin sector. Over the past year, the Ethereum blockchain facilitated the movement of an impressive $4 trillion in stablecoins, enabling additional transactions totaling $5.5 trillion in such tokens. Presently, the market capitalization of Ethereum-based stablecoins surpasses $91 billion.
Comparing Ethereum’s revenue generation to that of major Web2 platforms, the report points out that “Ethereum ($3.4 billion) generates more revenue than Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion) […] Seen as a vibrant economic platform, Ethereum can be likened to a ‘digital mall’, experiencing a user growth of approximately 1,500% and revenue increase at a CAGR of 161% since 2019.”
VanEck’s bullish price forecast for Ethereum was also influenced by the recent approval of Ethereum-based exchange-traded funds (ETF) in the US. Furthermore, the company integrated the potential impact of artificial intelligence (AI) on Ethereum into its updated valuation model. The Ethereum network infrastructure is viewed as crucial for the emerging AI economy, offering unique features essential for AI application development.
VanEck underscores that Ethereum’s significance extends beyond financial capacities, enabling entrepreneurs to create more engaging and profitable applications in its open-source and permissionless ecosystem. The manager predicts that 71% of Ethereum’s revenues will come from financial businesses by 2030, with sectors like AI making significant contributions to its revenue stream.
At the time of reporting, the price of ETH was recorded at $3,848.21, reflecting a 1% increase in the last 24 hours. It is important to note that the views and opinions expressed in this article are for informational purposes only and do not serve as financial, investment, or other advice. Investing or trading in cryptocurrencies involves a risk of financial loss.