VanEck, an asset manager, recently shared its forecast for the price of Ethereum (ETH), projecting a potential surge in the cryptocurrency’s value to reach up to $154,000 by the year 2030. According to their analysis, Ethereum is anticipated to generate significant “free cash flows” amounting to around $66 billion, representing a substantial 487% increase from current levels.
One of the key highlights of VanEck’s report is Ethereum’s performance in the stablecoin sector. Over the past year, the Ethereum blockchain has facilitated the movement of an impressive $4 trillion in stablecoins, leading to additional transactions totaling $5.5 trillion in these tokens. Currently, the market capitalization of stablecoins based on Ethereum exceeds $91 billion.
The report also draws comparisons between the revenue generated by Ethereum and that of major Web2 platforms, noting that Ethereum’s revenue of $3.4 billion surpasses that of platforms like Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion). Described as a bustling economic platform, Ethereum is likened to a “digital mall” where user numbers have surged by approximately 1,500% and revenue has grown 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 US. Moreover, the company has taken into account the potential impact of artificial intelligence (AI) on Ethereum by integrating the AI market into its updated valuation model. The Ethereum network’s infrastructure is deemed crucial for the emerging AI economy, offering unique attributes necessary for the development of AI applications.
Beyond its financial capabilities, Ethereum is lauded by VanEck for its role in enabling the creation of more engaging and profitable applications for entrepreneurs due to its open source and permissionless environment. The manager 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 of the time of this publication, the price of ETH was recorded at $3,848.21, marking a 1% increase in the last 24 hours. It is important to note that the opinions 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.