Ethereum
Ethereum price will reach $22,000 by 2030, VanEck predicts
Global asset manager VanEck predicted Wednesday that the price of Ethereum would reach $22,000 by the end of the decade, calling the cryptocurrency “digital oil” in a new sense. report. This would represent a 468% increase from Ethereum’s current price.
While Ethereum generated $3.4 billion in revenue over the past year, VanEck also projects that figure to reach $51 billion by 2030.
“We believe ETH is a revolutionary asset with few equivalents in the non-crypto financial world,” the report asserts. “The Ethereum network will likely continue its rapid growth in market share relative to traditional financial market players and, increasingly, Big Tech.”
VanEck called Ethereum the centerpiece of its own financial system, as its network already secures more than $90 billion in stablecoins, approximately $7 billion in tokenized assets, and $308 billion in digital assets.
At the same time, VanEck sees Ethereum making inroads outside of crypto. Based on the size of the industries that applications created by Ethereum could disrupt, VanEck estimated that the network’s total addressable market is $15 trillion. These opportunities lie largely in the areas of finance, banking and payments, VanEck said.
Ethereum could also find roles in infrastructure and artificial intelligence, the company added, as well as marketing, advertising, social media and gaming.
The report highlighted some of the distinct aspects of Ethereum as a network and asset, from its nature as a “programmable currency” to a “yield commodity.” Notably, VanEck’s report calls Ethereum an “Internet reserve currency”, at the heart of its vast ecosystem and Layer 2 networks.
VanEck’s report comes shortly after that of the Securities and Exchange Commission. approval of Ethereum spot ETF. Allowing traditional investors to gain exposure to cryptocurrency in a traditional brokerage account, the move also had implications for the regulatory status of Ethereum.
For crypto-natives, the concept may be basic, but its importance was highlighted by VanEck: to send Ethereum or enter into smart contracts, a user must spend Ethereum on gas fees, which are then withdrawn from circulation by engraving. In essence, VanEck said this dynamic benefits Ethereum holders doubly: meeting demand while reducing supply.
The asset manager expects Ethereum to also take on established tech giants like Google and Apple as a platform for developers to build consumer-facing apps. While companies take about 30% of revenue from applications hosted on their respective digital stores, VanEck said Ethereum currently takes about 24% of revenue generated from gas fees.
“Compared to data-centric social media platforms like Facebook, we believe Ethereum can enable better and more lucrative applications for entrepreneurs,” the report said. “As more data is generated in the public domain and more commerce is moved away from costly and closed financial channels, trade gaps will erode.”
Edited by Ryan Ozawa.