- VanEck, one of the world’s largest asset managers, predicts Ethereum’s potential value could climb to $51,000 by 2030.
- This prediction is derived from three scenarios based on Ethereum’s network earnings, cash flows, and total dilution.
Ethereum, the second-largest blockchain by market capitalization, is projected to surge up to a whopping $51,000 per coin by 2030, according to a recent report by the asset manager and ETF behemoth, VanEck. These speculative projections, developed by Digital Assets analysts Matthew Sigel and Patrick Bush, are drawn from three potential scenarios forecasting the performance of Ethereum (ETH) in the coming years.
In the moderate scenario, ETH is estimated to be worth $11,800. This calculation leverages estimates of revenues generated by network fees, cash flows, and the fully diluted valuation of Ethereum. A key catalyst identified in this projection is the recent Shapella upgrade, leading to a significant “de-risking” of Ethereum’s staking sector. This, in turn, is predicted to boost the network’s revenue from $2.1 billion to $51 billion by 2030.
The analysts’ computations, assuming Ethereum retains a market share of 70% among all smart contract platforms, yield an implied price of $11,800 per coin by 2030.
Yet, as with any financial projection, caution is advised. Sigel and Bush have warned of the present hostile attitude of US authorities, primarily the Securities and Exchange Commission (SEC), towards the cryptocurrency sector. The analysts argue that the SEC’s current regulatory approach has virtually halted institutional cryptocurrency investments in the US.
Ethereum’s revenue generation via network fees, crucially, hinges on the blockchain’s rising adoption. VanEck’s projections anticipate a portion of banking and financial transactions being facilitated by Ethereum by 2030. However, if the regulatory hostility towards cryptocurrencies persists, network revenues could potentially stagnate at their current levels. In the worst-case scenario, the analysts predict an Ethereum price of a mere $343.
In stark contrast to this bearish outlook, the bullish scenario presents a more optimistic future. Here, the assumption is that 10% of the financial sector, Metaverse, media, and tech infrastructure will shift on-chain. If Ethereum maintains its status as the dominant layer-1 platform, capturing an assumed 70% market share, VanEck suggests a value of $51,000 per coin by 2030, with Ethereum’s annual revenues reaching $136 billion.
Interestingly, discounting the conservative prediction of $11,800, VanEck’s analysis suggests that Ethereum’s current price should be approximately $5,300. Such speculations not only highlight the potential growth trajectory of Ethereum but also emphasize the importance of regulatory clarity and mass adoption of blockchain technology in shaping Ethereum’s future.
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