in a new report Launched by global investment manager VanEck, Ethereum (ETH) takes center stage as the cryptocurrency with immense growth potential. Based on VanEck’s analysis, they predict that the price of ETH will reach $11,800 by 2030, positioning it as a formidable competitor to traditional US Treasuries.
This projection has caught the attention of cryptocurrency enthusiasts and investors around the world, as ETH continues to cement its position as a leading digital asset.
Valuation methodology and catalysts
The report, authored by Matthew Sigel, head of digital assets, and Patrick Bush, senior investment research analyst, delves into the detailed analysis behind VanEck’s Ethereum price prediction.
According to the report, employing a valuation methodology that takes into account transaction fees, miner mineable value (MEV) and “security as a service”, VanEck calculates the current value of ETH at $5,359.71, after apply a 12% discount. rate.
VanEck’s analysis extends beyond valuation, exploring Ethereum’s potential in various sectors and as a store of value within the cryptocurrency market. Research predicts that by 2030, ETH network revenue will increase from an average of $2.6 billion per year to $51 billion.
This projection assumes that Ethereum will capture 70% of the market share of smart contract protocols, a testament to its wide adoption and usefulness.
Ethereum on its way to $11,800
The base case scenario outlined by the VanEck researchers paints an optimistic picture of the future of ETH. According to his analysis, Ethereum’s projected revenue for the fiscal year ending April 30, 2030 stands at $51 billion.
With a validation fee of 1% and a global tax rate of 15%, the report arrives at a net cash flow of $42.90 billion for Ethereum.
Based on these findings, VanEck sets a base case price target of $11,848 per ETH token by 2030. To determine its current price, the projection is discounted to $5,300, taking into account a 12% cost of capital derived from the recent beta version of ETH.
These figures demonstrate VanEck’s optimism for Ethereum’s growth trajectory and solidify his prediction of ETH’s rise to $11,800 over the next decade.
Meanwhile, ETH has not shown any notable rises in recent weeks, apart from a 1.7% decline in the last 7 days. The second crypto asset by market capitalization has also declined almost 2% in the past week. And in the last 24 hours, ETH has experienced a 1.8% loss in value.
At the time of writing, Ethereum is currently trading at $1,870. ETH trading volume has also plummeted significantly from $8.2 billion early last week to $5.4 billion in the last 24 hours, indicating less trading activity in the Ethereum market.
In contrast, the ETH market cap has seen a loss of over $4 billion in the last 7 days. While BTC’s market cap has plummeted from $228.3 billion last Tuesday to $224 billion as of today.
Featured Image from Shutterstock, Chart from TradingView
