Asset manager VanEck recently revealed its Ethereum (ETH) price forecast, projecting a potential surge in the cryptocurrency’s value to $154,000 by 2030. The company’s analysis anticipates Ethereum to generate substantial “free cash flows” of around $66 billion, indicating a remarkable 487% growth from current levels.
VanEck’s report specifically emphasizes Ethereum’s strong performance in the stablecoin sector. Over the past year, Ethereum’s blockchain facilitated a staggering $4 trillion in stablecoin transactions, leading to a total of $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 major Web2 platforms, highlighting that Ethereum’s revenue of $3.4 billion exceeds that of Etsy, Twitch, and Roblox. Described as a dynamic economic platform, Ethereum is likened to a ‘digital mall’, experiencing a user growth of approximately 1,500% and a revenue increase at a CAGR of 161% since 2019.
VanEck’s optimistic price outlook for Ethereum is further supported by the recent approval of Ethereum-based exchange-traded funds (ETF) in the US. Additionally, the company assesses the potential impact of artificial intelligence (AI) on Ethereum, integrating the AI market into its valuation model. The Ethereum network is deemed crucial to the emerging AI economy, offering unique properties essential for AI application development.
VanEck underscores that Ethereum’s significance extends beyond financial capabilities, enabling the creation of innovative and profitable applications for entrepreneurs within its open source and permissionless environment. The manager predicts that 71% of Ethereum’s revenue will come from financial businesses by 2030, with sectors like AI also contributing significantly to its revenue stream.
Considering various scenarios, including baseline, bullish, and bearish cases, VanEck presents different price targets and revenue estimates for Ethereum by 2030. The document also outlines key factors such as global crypto tax rates, validator hacks, and FCF for tokenholders.
As of the latest data, 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 involves risks of financial loss.
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