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VanEck believes ethereum (eth) will be worth approximately $22,000 by 2030, the asset manager said in a comprehensive analysis published on eth-2030-price-target/”>5th June.
The forecast, developed by the firm's Digital Asset Research team, led by Matthew Sigel, highlights ethereum's strong growth potential within traditional and cryptocurrency-focused portfolios.
VanEck's analysis attributes the optimistic price target to ethereum's growing role as a high-growth, internet-native trading system that could disrupt traditional financial sectors and Big tech platforms.
The report emphasized ethereum's significant user base and economic activity, noting that the network currently supports approximately 20 million monthly active users, facilitates $4 trillion in annual settlement value, and oversees $308 billion in digital assets.
$2 trillion market capitalization
VanEck's valuation model for eth is based on a forecast of $66 billion in free cash flows (the amount of money generated by a blockchain network) by 2030, with a 33x valuation multiple on those cash flows. cash.
The model considers ethereum's potential to disrupt various business sectors, including finance, marketing, infrastructure, and artificial intelligence (ai).
According to the report, the ethereum network is poised to capture substantial market share from traditional financial markets and tech giants.
If ethereum maintains its dominance among smart contract platforms, VanEck sees a credible path to generating $66 billion in free cash flow (the amount of money generated by a blockchain network) for token holders, supporting a market capitalization of $2.2 billion and a price of $22,000 per eth. by 2030.
Revolutionary asset
The company emphasized the broad use cases of eth and stated:
“We believe eth is a revolutionary asset with few parallels in the non-crypto financial world.”
VanEck cited eth's role as “digital oil” consumed in on-chain usage and called it “programmable money and a yield-generating commodity.”
He also referred to eth as an Internet reserve currency that values activity and assets in the billion-dollar ethereum ecosystem and connected blockchains.
According to the report, ethereum generated $3.4 billion in revenue over the past year, surpassing some web2 apps like Etsy, Twitch, and Roblox. Meanwhile, its 20 million monthly active users surpass Instacart, Robinhood, and Vrbo.
VanEck added that eth offers cost-saving features, better interconnectivity for social applications, the opportunity to share profits with end users, and a foundation for artificial intelligence applications.
Investment risks
While the report is optimistic about the future of ethereum, it also emphasizes several risks associated with investing in eth.
A major concern is ethereum's dependence on speculative activities, which could create significant downside risk if market sentiment changes.
Regulatory changes pose another risk as they could classify eth as a security, thus imposing strict legal requirements on ethereum-based companies. The competitive landscape is also a threat, with emerging technologies like Solana challenging its market dominance.
Additionally, government actions to control non-sovereign financial systems could negatively impact ethereum's growth prospects.
