Ethereum
VanEck predicts Ethereum will reach $22,000 per token by 2030
VanEck believes Ethereum (ETH) will be worth around $22,000 by 2030, the asset manager said in a comprehensive analysis published on June 5.
The forecast, developed by the company’s digital assets research team led by Matthew Sigel, highlights Ethereum’s strong growth potential within traditional and cryptocurrency-focused wallets.
VanEck’s analysis attributes the optimistic price target to Ethereum’s growing role as a high-growth internet trading system that could disrupt traditional financial sectors and large technology platforms.
The report emphasizes Ethereum’s large user base and economic activity, noting that the network currently supports approximately 20 million monthly active users, facilitates $4 trillion in value of annual settlement and oversees $308 billion in digital assets.
Market capitalization of $2 trillion
VanEck’s valuation model for ETH is based on a forecast of $66 billion in free cash flow – the amount of money generated by a blockchain network – by 2030, with a valuation multiple of 33x on these cash flows.
The model considers Ethereum’s potential to disrupt various industries, including finance, marketing, infrastructure, and artificial intelligence (AI).
According to the report, the Ethereum network is poised to capture a substantial market share from traditional financial markets and tech giants.
If Ethereum maintains its dominance among smart contract platforms, VanEck sees a credible path to generating $66 billion in free cash flow – the amount of money generated by a blockchain network – for token holders – supporting a market cap of $2.2 trillion and a price of $22,000 per ETH. by 2030.
Revolutionary asset
The company highlighted the broad use cases for ETH, saying:
“We believe ETH is a revolutionary asset with few equivalents in the non-crypto financial world.”
VanEck cited ETH’s role as a “digital oil” consumed in on-chain usage and called it “programmable money and a yield-generating commodity.”
It also refers to ETH as an internet reserve currency that evaluates activity and assets in Ethereum’s billion-dollar ecosystem and connects blockchains.
According to the report, Ethereum generated $3.4 billion in revenue over the past year, surpassing some Web2 apps like Etsy, Twitch, and Roblox. Meanwhile, its 20 million monthly active users surpass Instacart, Robinhood and Vrbo.
VanEck added that ETH offers cost-saving features, better interconnectivity for social applications, the ability to share revenue with end users, and a foundation for AI applications.
Investment risks
Although the report is optimistic about the future of Ethereum, it also highlights several risks associated with investing in ETH.
One of the main concerns is Ethereum’s reliance on speculative activities, which could lead to significant downside risk if market sentiment changes.
Regulatory changes present another risk, as they could classify ETH as a security, thereby imposing strict legal requirements on Ethereum-based businesses. The competitive landscape also poses a threat, with emerging technologies like Solana challenging its market dominance.
Additionally, government measures aimed at controlling non-sovereign financial systems could negatively impact Ethereum’s growth prospects.