101900000000 Asset Manager Predicts Ethereum Could Surge by 3805 Reveals Timeline
VanEck, a prominent investment management firm, has high hopes for Ethereum (
ETH
), predicting that its price could soar to five figures in the coming years.
In a recent research analysis, VanEck outlined its projections for Ethereum, setting a base case target of $22,000 by 2030, representing a 472% increase from the current price. The firm’s more bullish scenario envisions Ethereum reaching $154,000 by the same year, reflecting a massive 3,905% surge from its current levels.
Source: VanEck
VanEck attributes Ethereum’s potential price growth to the rise in its free cash flows, which refers to the surplus ETH generated by the network after deducting operational costs like gas fees for transactions and smart contracts.
Describing Ethereum as a thriving digital economy with around 20 million active users per month, VanEck highlights its role in settling $4 trillion in value and facilitating $5.5 trillion in stablecoin transactions over the past year. Ethereum also safeguards over $91.2 billion in stablecoins, $6.7 billion in tokenized assets, and $308 billion in digital assets, with the ETH token at the core of this financial system.
According to VanEck’s analysis, Ethereum’s 2030 valuation is based on a projected $66 billion in free cashflows generated by the network and benefiting the ETH token.
At the time of writing, Ethereum is trading at $3,845.
With $101.9 billion in assets under management, VanEck points out that Ethereum currently generates more revenue per user compared to well-known brands like Apple Music, Netflix, and Instagram. The firm categorizes Ethereum as a platform business akin to the Apple App Store or Google Play.
Despite its optimism, VanEck acknowledges potential regulatory risks that could impact Ethereum’s future.
“a. Depending on regulations, ETH or assets within its ecosystem may face classification as securities, leading to registration requirements with the SEC or legal repercussions for Ethereum businesses.
b. Major financial institutions have significant lobbying power and former employees in key government positions worldwide, potentially creating regulatory barriers that hinder disruptors like Ethereum.”
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