The world of cryptocurrency is full of exciting possibilities and unexpected growth. In a recent series of tweetsAdam Cochran, a partner at CEHV, sparked a wave of Ethereum debate by making a compelling case for Ethereum’s token ETH to potentially reach $457,081.
Revealing the analysis
Cochran addressed skeptics who questioned the feasibility of ETH seeing a 20x increase, comparing it to the market caps of tech giants like Apple and Amazon. He stressed that Ethereum should not be seen as a traditional company, but as an innovative blockchain-based infrastructure that transcends conventional boundaries.
Cochran’s analysis was inspired by the sheer magnitude of securities processed through clearinghouses, reaching a staggering $2.5 trillion last year. Contemplating carrying out this process on the Ethereum blockchain with a meager 0.05% gas fee, Cochran envisioned an annual burn of $1.25 trillion worth of ETH, equivalent to 5.7 times the current market capitalization.
On this basis, he extrapolated a prospective multiple that projected the potential value of Ethereum to approach $35 trillion.
Cochran’s projection gained further momentum when he introduced the concept of a compound consumption rate. Assuming a CAGR of 2% or more over a 20-year period, the value per ETH could potentially skyrocket to $457,081.
Furthermore, Cochran acknowledged that achieving a scenario where 100% of global securities liquidation occurs on Ethereum within two decades might be unlikely, but liquidating 10% within a decade seemed feasible.
Ethereum Value and Market Scope
Beyond the stock market, Cochran proposed that Ethereum could capture additional value-based markets, further fueling its growth. He argued that liquidating 10% of global equities and tapping into other equity markets could realistically lead to a 30x-35x increase in value over the next decade, even accounting for a 33% margin of error.
Notably, Cochran’s analysis sheds light on Ethereum’s potential to disrupt traditional intermediaries by offering reliable and affordable settlement solutions. With trillions of dollars in annual revenue at stake, the prospect of cutting out trusted intermediaries is becoming increasingly attractive to various markets around the world.
While Cochran’s projections may seem bold, they highlight the limitless possibilities within the crypto space. Ethereum’s unique position as a blockchain infrastructure opens the doors for innovation and disruption, ultimately challenging the status quo of trusted intermediaries.
Meanwhile, The Ethereum price has not had any significant movement in the last week, but it did have a slight upward trend, 0.6%. ETH has risen from a low of $1,805 seen last Friday to trade at $1,815, at the time of writing.
Ethereum’s market cap has also posted small gains in the past seven days. ETH’s market capitalization has risen nearly 1% from a low of $217 billion to a high of $218 billion on Friday. Meanwhile, ETH’s daily trading volume has also plunged over the week from a high of $7 billion last Monday to $3.6 billion in the last 24 hours.
-Shutterstock Featured Image, Chart from TradingView
