VanEck, an American investment management firm, has made a bold prediction that Ethereum will reach a staggering $22,000 by 2030. This optimistic forecast is based on the significant growth of digital finance, artificial intelligence (AI), and blockchain utility.
The recent approval of Spot ETH ETFs by the SEC has further boosted investor interest in Ethereum, supporting VanEck’s projection. The firm believes that Ethereum’s free cash flows will reach $66 billion by 2030, leading to a valuation multiple of 33x.
Apart from the ETF inflows, Ethereum’s price movement in June 2024 may also be influenced by the upcoming US Non-Farm Payrolls report on June 7. As of now, ETH is trading at $3,843, reflecting a growth of 0.72% in the past 24 hours.
Ethereum has firmly established itself as a dominant force in the digital economy, with 20 million monthly active users. Over the past year, it has facilitated $4 trillion in transactions and $5.5 trillion in stablecoin transfers. Additionally, Ethereum controls a substantial amount of stablecoins ($91.2 billion), tokenized off-chain assets ($6.7 billion), and virtual currency ($308 billion).
VanEck’s analysis focuses on Ethereum’s potential to disrupt various industries, including finance, banking, marketing, infrastructure, and AI. The projected $15 trillion total addressable market (TAM) encompasses these sectors, with an expected penetration of 7.5% in banking, 20% in marketing, 10% in infrastructure, and 5% in AI.
The unique value proposition of Ethereum, described as “Digital Oil,” “Programmable Money,” “Yield Bearing Commodity,” and “Internet Reserve Currency,” forms the foundation of its growth potential. The blockchain has witnessed a surge in revenue, generating $3.4 billion in the past year. This revenue, which benefits ETH holders, is further supported by buybacks and burns, effectively removing 0.4% of the supply in six months.
Furthermore, Ethereum’s user base and revenue growth surpass those of traditional web2 applications like Etsy and Roblox. The average Ethereum user generates $172 in annual revenue, comparable to popular platforms like Apple Music and Netflix. This economic activity drives the demand for ETH and benefits all holders.
One of Ethereum’s competitive advantages lies in its lower cost structure compared to tech giants like Apple and Google. While these companies typically take around 30% of app revenue, Ethereum’s take rate is approximately 24%, expected to decrease to 5-10% with the adoption of Layer-2 solutions. This efficiency is expected to attract more businesses and users to the Ethereum platform.
VanEck also envisions Ethereum playing a crucial role in AI applications by providing the necessary infrastructure for AI agents. By 2030, the AI sector alone could contribute $1.2 billion in revenue to ETH holders. With finance expected to dominate Ethereum’s revenue, the implementation of Layer-2 solutions will enhance scalability and drive future growth.
It is important to note that this article is purely informational and should not be considered financial advice. The views expressed here are the author’s personal opinions and do not necessarily reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic does not take responsibility for any financial losses incurred.
