VanEck, an asset manager, recently revealed its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to as high as $154,000 by 2030. As per the company’s analysis, Ethereum is anticipated to generate significant “free cash flows” amounting to $66 billion, showcasing a remarkable 487% growth from current levels.
VanEck’s report specifically focuses on Ethereum’s performance in the stablecoin sector. Over the past year, Ethereum’s 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 stablecoins based on Ethereum surpasses $91 billion.
The report draws a comparison between the revenue generated by Ethereum and that of major Web2 platforms, stating that “Ethereum ($3.4 billion) generates more revenue than Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion) […] Viewed as a vibrant economic platform, Ethereum can be likened to a ‘digital mall’, with user numbers growing by around 1,500% and revenue increasing at a CAGR of 161% since 2019.”
VanEck’s optimistic price review is also influenced by the recent approval of Ethereum-based exchange-traded funds (ETF) in the US. Furthermore, 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 features essential for the advancement of AI applications.
VanEck stresses that Ethereum’s significance extends beyond financial aspects, empowering entrepreneurs to create more engaging and lucrative applications due to its open-source and permissionless environment. The asset manager predicts that 71% of Ethereum’s revenues will stem from financial businesses by 2030, with sectors like AI making significant contributions to its revenue stream.
At the time of writing, the price of ETH stood at US$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 involves a risk of financial loss.