VanEck, a prominent asset manager, recently revealed its Ethereum (ETH) price forecast, projecting a potential surge in the digital currency’s value to a staggering $154,000 by the year 2030. As per the company’s analysis, Ethereum is anticipated to generate “free cash flows” amounting to around $66 billion, showcasing a remarkable growth of 487% from its current values.
The report from VanEck specifically accentuates Ethereum’s exceptional performance within the stablecoin sector. Over the past year, the Ethereum blockchain facilitated a whopping $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.
Drawing a comparison between Ethereum’s revenue and that of major Web2 platforms, the document points out that Ethereum’s revenue of $3.4 billion exceeds that of platforms like Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion). Described as a vibrant economic platform, Ethereum is likened to a ‘digital mall’, witnessing a user growth of approximately 1,500% and revenue escalation at a Compound Annual Growth Rate (CAGR) of 161% since 2019.
VanEck’s bullish price forecast for Ethereum was further fueled by the recent approval of Ethereum-based exchange-traded funds (ETF) in the United States. Moreover, the company delved into the potential impact of artificial intelligence (AI) on Ethereum, integrating the AI market into its revised valuation model. The Ethereum network’s infrastructure is deemed crucial for the burgeoning AI economy, offering unique attributes vital for the advancement of AI applications.
Beyond its financial prowess, Ethereum is lauded by VanEck for its role in fostering the creation of innovative and lucrative applications for entrepreneurs, thanks to its open-source and permissionless environment. The asset manager predicts that by 2030, 71% of Ethereum’s revenues will stem from financial enterprises, with sectors like AI making significant contributions to its revenue stream.
In terms of price predictions for Ethereum in 2030, VanEck outlines baseline, bullish, and bearish scenarios, projecting target prices ranging from $22,000 to $154,000. At the time of writing, the price of ETH stood at $3,848.21, reflecting a 1% increase in the past 24 hours.
Disclaimer: The opinions and views expressed in this article are solely for informational purposes and do not constitute financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.