Ethereum
Ethereum Could Skyrocket Up to 3,805%, Says $101,900,000,000 Asset Manager – Here’s the Timeline
Giant investment manager VanEck believes that Ethereum (ETH) could reach a five-figure price in the coming years.
In new research reportVanEck says his 2030 base case target for Ethereum is $22,000, a 472% gain from the current price, while his bull case target for the same period is $154,000, a 3,905% rally from current level.
Source: VanEck
The global investment manager says Ethereum’s potential price rise will be driven by an increase in its free cash flow – the amount of ETH available for Ethereum network operations after subtracting all network costs such as gas fees used for transactions and smart contracts.
“Ethereum is a thriving digital economy that attracts approximately 20 million monthly active users while settling $4 trillion in settlement value and facilitating $5.5 trillion in stablecoin transfers over the past twelve months. Ethereum secures over $91.2 billion in stablecoins, $6.7 billion in tokenized off-chain assets, and $308 billion in digital assets. The central asset of this financial system is the ETH token…
…We forecast the valuation of ETH for 2030 based on a forecast of $66 billion in free cash flow generated by Ethereum and flowing back to the ETH token.
Ethereum is trading at $3,845 at the time of writing.
VanEck, who currently is bragging $101.9 billion in assets under management indicates that Ethereum currently generates more revenue per user than some major household brands.
“Ethereum monthly active user generates $172 in annual revenue, comparable to Apple Music, $100; Netflix, $142; and Instagram, $25. We categorize Ethereum as a platform business similar to the Apple App Store or Google Play.
According to the global investment manager, some of the downside risks Ethereum faces include regulatory risks.
“a. Depending on regulations. ETH or many assets in its ecosystem may be classified as securities. This could force many Ethereum companies to register with the SEC or face serious legal consequences.
b. The largest financial companies have a significant presence of lobbyists as well as former employees appointed to the highest levels of most governments around the world. These former employees could create regulatory gaps that disadvantage disruptors like Ethereum.
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