VanEck, a prominent asset manager, recently revealed its forecast for the price of Ethereum (ETH), projecting a potential surge in the cryptocurrency’s value to reach as high as $154,000 by the year 2030. The company’s analysis anticipates Ethereum to yield “free cash flows” amounting to $66 billion, indicating a significant growth of 487% from current levels.
VanEck’s report specifically highlights 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, resulting in additional transactions totaling $5.5 trillion in such tokens. Presently, the market capitalization of Ethereum-based stablecoins surpasses $91 billion.
The report draws comparisons between the revenue generated by Ethereum and that of major Web2 platforms, noting that Ethereum, with $3.4 billion in revenue, outperforms platforms like Etsy, Twitch, and Roblox. Described as a dynamic economic platform, Ethereum is likened to a “digital mall,” experiencing a 1,500% user growth and a revenue increase at a Compound Annual Growth Rate (CAGR) of 161% since 2019.
VanEck’s optimistic price outlook for Ethereum is further bolstered by the recent approval of Ethereum-based exchange-traded funds (ETF) in the United States. The company also factors in the potential impact of artificial intelligence (AI) on Ethereum, considering the Ethereum network’s critical role in the emerging AI economy.
Beyond its financial capabilities, Ethereum is recognized for enabling the development of engaging and profitable applications for entrepreneurs within its open source and permissionless environment. VanEck predicts that by 2030, 71% of Ethereum’s revenues will stem from financial businesses, with sectors like AI making significant contributions to its revenue stream.
As for Ethereum’s future price targets, the forecast provides baseline, bullish, and bearish scenarios for 2030, with estimated revenues ranging from $78.5 million to $361.6 million. The document also outlines various factors such as global crypto tax rates and potential validator hacks that could impact Ethereum’s trajectory.
At the time of writing, the price of ETH stood at $3,848.21, reflecting a 1% increase over the last 24 hours. It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.
