VanEck Revises Ethereum Prediction To Put Price At $22,000, Heres Why
Asset manager VanEck recently revised its prediction for Ethereum (ETH), revealing what price it believes the second-largest crypto token could reach by 2030. The firm also did well to outline what could drive Ethereums price to this revised price.
Ethereum To Reach $22,000 By 2030
In a recent blog post, VanEck predicted that Ethereum could reach $22,000 by 2030. Before now, the asset manager had predicted that the crypto token would hit $11,800 by 2030. However, VanEck suggested they had become more bullish on ETH in anticipation of the Spot Ethereum ETFs, which could begin trading soon.
They noted that these Spot Ethereum ETFs have caused them to revise their earlier prediction since these funds will allow financial advisors and institutional investors to hold the crypto token. They believe this category of investors could bring new money into the Ethereum ecosystem, further driving up the crypto tokens price.
VanEck projects that the Ethereum network will likely continue to enjoy rapid share market growth thanks to interest from traditional investors and Big Tech. They believe this, along with EETHs dominance among smart contract platforms, could lead to a create path to $66 billion in free cash flows for the network.
They base their projection of ETHs valuation by 2030 on this, stating that these cash flows will accrue to Ethereums native token. A rise to $22,000 represents a return of around 487% from Ethereums current price and a compound annual growth rate (CAGR) of 37.8%. Meanwhile, Ethereum reaching $22,000 will give it a market cap of around $2.2 trillion.
Highlighting Ethereums Potential
VanEck sounded very bullish on the Ethereum ecosystem as it claimed that the network could disrupt existing financial businesses and the largest tech companies, including Google and Apple. Given that Ethereum has earned a reputation as the platform for decentralized applications (dApps), they factored in the market size of business sectors that blockchain technology will disrupt while determining ETHs future valuation.
The asset manager also highlighted how ETH benefits massively from ETHs potential since no action can be taken on the network without the native token. Additionally, they noted how 80% of the revenues earned on the network are used to buy back and burn Ethereum tokens in circulation.
Meanwhile, VanEck believes that ETH is a revolutionary asset with few parallels in the non-crypto financial world. They referred to it as Digita Oil since it is consumed by those transacting on the Ethereum network.
The asset manager also called it Programmable Money and Yield Bearing Commodity because of how automated the Ethereum network is and that validators earn yields on the crypto token when they stake their ETH. Lastly, it was referred to as the Internet Reserve Currency since it serves as the base asset for all activity and most digital assets with the ETH ecosystem worth over $1 trillion.
Read more: https://www.newsbtc.com/news/ethereum/vaneck-ethereum-price-22000/
Text source: NewsBTC
