VanEck, a prominent asset manager, recently unveiled its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to $154,000 by 2030. According to VanEck’s analysis, Ethereum is anticipated to generate “free cash flows” of around $66 billion, indicating a significant growth of 487% from current levels.
The report from VanEck shines a spotlight on Ethereum’s strong 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 amounting to $5.5 trillion in such tokens. Presently, the market capitalization of stablecoins based on Ethereum surpasses $91 billion.
Comparing the revenue generated by Ethereum to that of major Web2 platforms, the report notes that Ethereum’s revenue of $3.4 billion exceeds that of platforms like Etsy, Twitch, and Roblox. Described as a bustling economic platform, Ethereum is likened to a “digital mall,” with user numbers growing by approximately 1,500% and revenue increasing at a compounded annual growth rate (CAGR) of 161% since 2019.
VanEck’s optimistic price evaluation of Ethereum was influenced by the recent approval of Ethereum-based exchange-traded funds (ETF) in the United States. Furthermore, the company took into account the potential impact of artificial intelligence (AI) on Ethereum, incorporating the AI market into its updated valuation model. The Ethereum network’s infrastructure is deemed crucial for the emerging AI economy, offering unique properties essential for AI application development.
VanEck emphasizes that Ethereum’s significance extends beyond its financial capabilities, enabling entrepreneurs to create more engaging and profitable applications in its open-source and permissionless environment. 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.
As of the time of writing, the price of ETH stood at $3,848.21, marking a 1% increase in the last 24 hours.
Disclaimer: The opinions expressed in this article are solely for informational purposes and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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