VanEck Predicts Ethereum Will Hit $22,000 Per Token By 2030
By: Eva Baxter
VanEck has forecasted a significant increase in the value of Ethereum (ETH), predicting it will be worth approximately $22,000 by 2030. This optimistic prediction was outlined in a comprehensive analysis by the firm’s Digital Assets Research team, led by Matthew Sigel, which was published on June 5.
The analysis underscores Ethereum's strong growth potential, both within traditional and cryptocurrency-focused portfolios. VanEck attributes this forecast to Ethereum's growing role as a high-growth, internet-native commercial system with the potential to disrupt traditional financial sectors and significant technology platforms.
VanEck's valuation model is built on a projection of $66 billion in free cash flows generated by the Ethereum network by 2030, applying a 33x valuation multiple to those cash flows. This valuation anticipates Ethereum maintaining its dominance in smart contract platforms and expanding its user base, which currently stands at approximately 20 million monthly active users. The network is reported to facilitate $4 trillion in annual settlement value and oversees $308 billion in digital assets.
$2 Trillion Market Cap
The analysis also details Ethereum's potential to disrupt various business sectors, including finance, marketing, infrastructure, and artificial intelligence (AI). The report suggests that Ethereum could capture substantial market share from traditional financial markets and technology giants. This potential disruption and market share capture support VanEck’s forecast of Ethereum achieving a $2.2 trillion market capitalization and a price of $22,000 per ETH by 2030.
Revolutionary Asset
VanEck emphasizes ETH's broad use cases, describing it as a revolutionary asset with few parallels in the traditional non-crypto financial world. It cites ETH's utility as 'digital oil' consumed in on-chain transactions, programmable money, and a yield-bearing commodity. Additionally, it highlights Ethereum's role as an internet reserve currency that prices activity and assets within its $1 billion ecosystem.
The report also points out that Ethereum has generated $3.4 billion in revenue over the past year, surpassing certain web2 apps such as Etsy, Twitch, and Roblox. Ethereum's 20 million monthly active users exceed the user base of popular platforms like Instacart, Robinhood, and Vrbo. VanEck also mentions Ethereum's cost-saving features, better interconnectivity for social applications, the opportunity to share earnings with end users, and its utility in AI applications.
Investment Risks
Despite the optimistic outlook, the report highlights several risks associated with investing in ETH. One concern is Ethereum's dependence on speculative activities, posing a significant downside risk if market sentiment shifts. Another risk factor is regulatory changes that could potentially classify ETH as a security, imposing stringent legal requirements on Ethereum-based businesses. Competition from emerging technologies like Solana also poses a threat, as well as government actions to control non-sovereign financial systems, which could impede Ethereum's growth.
