On June 5, VanEck released an updated analysis predicting that Ethereum could hit $22,000 by 2030.
This report, authored by Matthew Sigel, Patrick Bush, and Denis Zinoviev, explores Ethereum’s potential growth and its role in both traditional and crypto-focused investment portfolios.
Market dominance
VanEck’s prediction of Ethereum reaching $22,000 by 2030 based on the assumption that it will maintain its leading position in the smart contract platform arena, against the many so-called Ethereum-killers.
The report suggests that Ethereum’s value proposition is attractive to entrepreneurs and tech companies, implying that it will continue to gain market share from traditional financial sectors and large tech firms.
VanEck estimates that in the coming years Ethereum could generate $66 billion in free cash flow, supporting a market capitalization of $2.2 trillion.
The report also mentioning the approval of spot ether ETFs in the U.S., which could offer a secure, traditional-like investment option for institutional investors and financial advisors, potentially improving liquidity and pricing.
Lots of users, huge volume
VanEck highlights Ethereum’s growing economic activity and revenue generation, noting that the network experiencing about 20 million monthly active users and handles huge transaction volumes.
The report projects Ethereum’s total addressable market, the TAM across various sectors, including finance, marketing, infrastructure, and artificial intelligence, estimating a TAM of $15 trillion.
Also, VanEck predicts that Ethereum’s revenue, derived from transaction fees, Layer-2 networks, blockspace ordering, and security services, will see significant growth, and they think by 2030, financial businesses are expected to account for 71% of Ethereum’s revenues, with the rest coming from sectors like marketing, infrastructure, and AI.
Future paths
VanEck compares Ethereum to major Web2 companies, noting that it generates more revenue than platforms like Etsy and Twitch, and boasts a larger user base than Instacart and Robinhood.
Next to this, the report also admit there are several risks associated with investing in Ethereum, like regulatory uncertainties, interest rate changes, market competition, and geopolitical factors, and such risks could impact Ethereum’s growth and valuation, making the prediction hard.
