VanEck asset manager recently revised its forecasts for Ethereum (ETH)revealing what price it believes the second-largest crypto token could reach by 2030. The company also did well to outline what it could fuel Ethereum price to this adjusted price.
Ethereum will reach $22,000 by 2030
In recent blog postVanEck predicted that Ethereum could reach $22,000 by 2030. Previously, the asset manager predicted that the crypto token would reach $11,800 by 2030. However, VanEck suggested that in anticipation of ETH Spot Ethereum ETFswhich may start trading soon.
They noted that these Spot Ethereum ETFs have caused them to revise their previous forecasts because these funds will enable financial advisors and institutional investors to store a cryptographic token. They believe this category of investors can bring novel money into the Ethereum ecosystem, further pushing the price of the crypto token even higher.
VanEck predicts that the Ethereum network will likely continue to see rapid market share growth thanks to interest from classic investors and Massive Tech. They believe in it, along with EETH domination among shrewd contract platforms, it could lead to “creating a path to $66 billion in free cash flow” for the network.
They base their ETH valuation forecast by 2030 on this, stating that these cash flows will belong to the native Ethereum token. The enhance to $22,000 represents a return of approximately 487% on Ethereum’s current price and a compound annual growth rate (CAGR) of 37.8%. Meanwhile, Ethereum reaching $22,000 will give it a market capitalization approximately $2.2 trillion.
Highlighting the potential of Ethereum
VanEck sounded very bullish on the stock market Ethereum ecosystem as he claimed the network could disrupt existing financial enterprises and major technology companies, including Google and Apple. Given that Ethereum has gained a reputation as a platform for dcentralized applications (dApps)when determining ETH’s future valuation, they took into account the market size of the business sectors that blockchain technology will disrupt.
The asset manager also highlighted how ETH greatly benefits from ETH’s potential as without the native token, no action can be taken on the network. Additionally, they pointed out what 80% of revenues generated online are used to redeem and burn Ethereum tokens in circulation.
Meanwhile, VanEck believes that ETH is “a revolutionary asset with few counterparts in the world of finance other than cryptocurrencies.” They called it “Digita Oil” because it is consumed by people transacting on Ethereum network.
The asset manager also called it “Programmable Money” and “Income Generating Commodity” due to the degree of automation of the Ethereum network and the fact that validators earn cryptocurrency token when they stake their ETH. Finally, it has been called the “internet reserve currency” because it serves as the “underlying asset” for all activity and most digital assets in the over $1 trillion ETH ecosystem.
