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VanEck predicts Ethereum will reach $22,000 per token by 2030
VanEck you think Ethereum (ETH) will be worth around $22,000 by 2030, the asset manager said in an in-depth analysis published on June 5th.
The forecast, developed by the company’s digital assets research team, led by Matthew Sigel, highlights Ethereum’s strong growth potential within both traditional and cryptocurrency-focused portfolios.
VanEck’s analysis attributes the optimistic price target to Ethereum’s expanding role as a high-growth, internet-native trading system that could disrupt traditional financial sectors and Big Tech platforms.
The report highlights Ethereum’s significant user base and economic activity, noting that the network currently supports approximately 20 million monthly active users, facilitates $4 trillion in annual liquidation value, and oversees $308 billion in digital assets.
Market capitalization of $2 trillion
VanEck’s valuation model for ETH is based on a forecast of $66 billion in free cash flows (the amount of money generated by a blockchain network) by 2030, with a 33x valuation multiple on those cash flows.
The model considers Ethereum’s potential to revolutionize various business sectors, including finance, marketing, infrastructure, and artificial intelligence (AI).
According to the report, the Ethereum network is poised to capture substantial market share from traditional financial markets and tech giants.
If Ethereum maintains its dominance among smart contract platforms, VanEck sees a credible path to generating $66 billion in free cash flow – the amount of money generated by a blockchain network – for token holders, supporting a market capitalization of $2.2 trillion and a price of $22,000 per ETH. by 2030.
A revolutionary resource
The company highlighted ETH’s broad use cases, stating:
“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world.”
VanEck cited ETH’s role as a “digital oil” consumed in on-chain use and called it a “programmable currency and yield-producing commodity.”
He also referred to ETH as a reserve currency on the internet that values assets and assets in the $1 billion Ethereum ecosystem and connects blockchains.
According to the report, Ethereum generated $3.4 billion in revenue over the past year, surpassing some web2 apps such as Etsy, Twitch, and Roblox. Meanwhile, its 20 million monthly active users surpass Instacart, Robinhood, and Vrbo.
VanEck added that ETH offers cost-saving features, better interconnectivity for social applications, the opportunity to share earnings with end users, and a foundation for artificial intelligence applications.
Investment Risks
While the report is optimistic about the future of Ethereum, it also highlights several risks associated with investing in ETH.
One major concern is Ethereum’s reliance on speculative assets, which could lead to significant downside risk if market sentiment were to change.
Regulatory changes pose another risk, as they might classify ETH as a security, thus imposing strict legal requirements on Ethereum-based businesses. The competitive landscape also poses a threat, with emerging technologies like Solana challenging its dominant position in the market.
Additionally, government actions to control non-sovereign financial systems could have a negative impact on Ethereum’s growth prospects.