VanEck, an asset manager, recently revealed its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to up to $154,000 by 2030. The company’s report anticipates Ethereum to generate “free cash flows” amounting to around $66 billion, showcasing a remarkable growth of 487% from current levels.
VanEck’s report specifically focuses on Ethereum’s performance in the stablecoin sector. Over the past year, the Ethereum 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 Ethereum-based stablecoins surpasses $91 billion.
The report draws a comparison between Ethereum’s revenue and that of prominent Web2 platforms, noting that Ethereum’s revenue of $3.4 billion surpasses that of Etsy ($2.7 billion), Twitch ($2.6 billion), and Roblox ($2.7 billion). Described as a dynamic economic platform, Ethereum is likened to a “digital mall” with user growth of approximately 1,500% and revenue increasing at a CAGR of 161% since 2019.
VanEck’s optimistic price assessment is further influenced by the recent approval of Ethereum-based exchange-traded funds (ETF) in the US. The company also factors in the potential impact of artificial intelligence (AI) on Ethereum, integrating the AI market into its updated valuation model. The Ethereum network’s infrastructure is deemed crucial for the evolving AI economy, offering unique properties essential for AI application development.
Furthermore, VanEck highlights that Ethereum’s significance extends beyond financial capabilities, enabling entrepreneurs to create more engaging and profitable applications in its open source and permissionless environment. The manager predicts that 71% of Ethereum’s revenues will stem from financial businesses by 2030, with sectors like AI making substantial contributions to its revenue stream.
The article also provides Ethereum price predictions for 2030, outlining baseline, bullish, and bearish scenarios based on various factors like market share, revenue estimates, and global crypto tax rates. The piece concludes with the current price of ETH 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 should not be considered financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.