<img src="https://crypto.news/app/uploads/2024/05/crypto-news-ethereum-Wallets-option01.webp” />
VanEck has set a new price target for Ether (eth), the native token of the ethereum protocol, and predicts it will reach $22,000 in 2030.
The forecast represents a massive increase from its current ethereum/” target=”_blank” rel=””>price around $3,850.
The global investment firm had previously anticipated that Ether ETFs could overtake their bitcoin counterparts in market size.
In its last report of June 5 eth-2030-price-target/” target=”_blank” rel=””>reportVanEck attributed this optimistic forecast to ethereum's disruptive capabilities and the cash flow it generates for token holders.
VanEck's comprehensive analysis highlights ethereum's impact on multiple sectors, including finance, banking, payments, marketing, advertising, social media, gaming, infrastructure, and artificial intelligence.
The firm believes that the approval of Ether ETFs, along with on-chain data analysis, supports its prediction.
“We anticipate that Ether spot ETFs are close to being approved for listing on US stock exchanges,” the report states.
“This development would allow financial advisors and institutional investors to hold this unique asset securely with qualified custodians, while benefiting from the price and liquidity advantages characteristic of ETFs.”
According to VanEck, the disruptive power driving Ether to $22,000 is the ability of ethereum-based technology to offer lower costs, more efficiency, and greater transparency.
The shift, according to the company, could potentially shift significant market share from traditional financial and technology institutions, which have a combined total available market of $15 trillion, to blockchain-based solutions.
The report also forecasts that free cash flows from income derived from holding Ether will reach $66 billion by 2030, further supporting its projected valuation.
Ether is up more than 63% so far this year according to data from CoinMarketCap
Ryan Sean Adams, co-founder of Bankless, noted that despite fewer users, the ethereum blockchain generates three times more in fees than the major Layer 2 and Solana networks combined.
Adams went on to call it a “modern miracle” in a June 6 article. x.com/RyanSAdams/status/1798460468069085234″ target=”_blank” rel=””>mail.
Layer 2 solutions pay ethereum fees to settle transactions on the main chain and benefit from its security.
VanEck's proposed Ether spot ETF, which already has the symbol “ETHV” and is listed on the Depository Trust and Clearing Corporation (DTCC), is currently dormant and awaiting regulatory approval.
Last month, crypto asset trading firm QCP Capital predicted a potential 60% rally in the price of ethereum, taking it to around $6,000 if a spot ETF is approved.
QCP's bullish outlook aligns with that of research firm Bernstein, which noted that the sustained influx of demand seen for bitcoin ETFs following their approval would likely result in similar price action for ethereum.
According to data from the crypto.news price page, bitcoin (btc) rose 66% from around $44,300 to a high of $73,700 within two months of the ETF's approval.
