VanEck, a prominent asset manager, recently revealed its forecast for the price of Ethereum (ETH), projecting a potential rise in the cryptocurrency’s value up to $154,000 by the year 2030. According to the company’s analysis, Ethereum is anticipated to generate substantial “free cash flows” amounting to around $66 billion, representing a remarkable growth of 487% from current levels.
The report from VanEck particularly emphasizes Ethereum’s performance within the stablecoin sector. Over the past year, Ethereum’s blockchain facilitated the movement of an impressive $4 trillion in stablecoins, leading to additional transactions totaling $5.5 trillion in such tokens. Presently, the market capitalization of stablecoins based on Ethereum exceeds $91 billion.
Comparing the revenue generated by Ethereum to that of major Web2 platforms, the report highlights, “Ethereum ($3.4 billion) generates more revenue than Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion) […] Regarded as a dynamic economic platform, Ethereum can be likened to a ‘digital mall’, experiencing a 1,500% growth in users and a revenue increase at a CAGR of 161% since 2019.”
The recent approval of Ethereum-based exchange-traded funds (ETF) in the United States also played a significant role in VanEck’s optimistic price forecast. Furthermore, the company analyzed the potential impact of artificial intelligence (AI) on Ethereum, incorporating the AI market into its revised valuation model. The Ethereum network infrastructure is viewed as crucial to the emerging AI economy, offering unique properties essential for the development of AI applications.
VanEck underscores that Ethereum’s influence extends beyond its financial capabilities, enabling the creation of more engaging and profitable applications for entrepreneurs due to 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.
In terms of price predictions for 2030, VanEck presents three scenarios: Baseline, Bullish, and Bearish. These scenarios outline different target prices for Ethereum, estimated revenues, global crypto tax rates, validator hack probabilities, and projected free cash flows for tokenholders.
As of the time of writing, 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 or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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