VanEck, a prominent investment management firm, has high hopes for the future of Ethereum (
ETH
), predicting that its price could soar into five-figure territory in the years to come.
In a recently published research analysis, VanEck outlined its projections for Ethereum, setting a base case target of $22,000 by 2030, which would represent a substantial 472% increase from its current price. Additionally, the firm’s bullish scenario envisions Ethereum reaching an impressive $154,000 by the same year, marking a staggering 3,905% surge from current levels.
Source: VanEck
According to VanEck, the anticipated price appreciation of Ethereum will be fueled by a rise in its free cash flows, which refers to the amount of ETH generated by the Ethereum network after deducting all associated costs like gas fees for transactions and smart contracts.
Describing Ethereum as a thriving digital ecosystem with around 20 million active users per month, responsible for settling $4 trillion in transactions and facilitating $5.5 trillion in stablecoin transfers over the past year, VanEck highlighted the network’s significant value. Furthermore, Ethereum secures over $91.2 billion in stablecoins, $6.7 billion in tokenized off-chain assets, and $308 billion in digital assets, with the ETH token at the core of this financial system.
VanEck’s valuation model for Ethereum in 2030 is based on a projected $66 billion in free cash flows generated by the network and accruing to the ETH token.
At the time of writing, Ethereum is trading at $3,845.
With over $101.9 billion in assets under its management, VanEck compared Ethereum’s revenue generation per user to that of established brands like Apple Music, Netflix, and Instagram, categorizing Ethereum as a platform business akin to the Apple App Store or Google Play.
The firm also identified regulatory risks as potential challenges for Ethereum’s future growth, citing concerns that ETH and other assets in its ecosystem could be classified as securities, leading to regulatory hurdles for Ethereum-based businesses.
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