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HomeNews$76B Asset Manager Predicts Ethereum to Soar to $11,800 on Crucial Date...

$76B Asset Manager Predicts Ethereum to Soar to $11,800 on Crucial Date – Investors, Be Ready

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    • Investment manager VanEck’s report projects Ethereum’s price to reach $11,800 by 2030, potentially making it a competitor to U.S. Treasury bonds.
    • The valuation is based on considerations such as transaction fees, miner-extractable value (MEV), and the concept of “security as a service”.

Global investment manager VanEck recently released an analysis report projecting that Ethereum (ETH) could attain a value of $11,800 by the year 2030. This projection could place Ethereum on the competitive stage against U.S. Treasury bonds. The valuation was calculated using a 12% discount rate on Ethereum’s present value, resulting in a base case valuation of $5,359.71.

This comprehensive study, penned by Matthew Sigel, Head of Digital Assets, and Patrick Bush, a Senior Investment Analyst for Digital Assets, explores various factors that could impact Ethereum’s future value. Key considerations include transaction fees, MEV, and the increasingly important notion of “security as a service.”

In addition to these factors, the report scrutinizes Ethereum’s market share in vital sectors and its potential as a store of value within the burgeoning cryptocurrency market. VanEck envisages that by 2030, the annual average revenue of the ETH network could surge from $2.6 billion to $51 billion, given Ethereum’s command of 70% of the smart contract protocol market.

Under the base case scenario drawn by the researchers, Ethereum could generate a revenue of $51 billion for the fiscal year ending April 30, 2030. After subtracting 1% for validator fees and 15% for global tax, Ethereum’s cash flows are estimated to reach $42.90 billion. Consequently, VanEck deduces a base-case price target of $11,848 per token by 2030.

Considering a 12% cost of capital, reflecting Ethereum’s recent beta, this target price is discounted to a current price of $5,300.

Furthermore, Ethereum’s EIP-4844 protocol upgrade, also known as “proto-danksharding,” is anticipated to greatly improve Ethereum’s scalability. Expected to be implemented during the Deneb-Cancun upgrade in late 2023, this development is projected to substantially reduce costs associated with Ethereum Layer 2 solutions, potentially by a factor of 10 or even 100.

While the EIP-4844 may momentarily decrease the quantity of ETH burned due to reduced Layer 2 solution fees, the expected growth in Ethereum’s economic activity could result in an overall increase in value accumulation in the medium term.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628
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