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VanEck Revises Ethereum Prediction to Set Price at $22,000, Here’s Why
VanEck Asset Manager recently revised its forecast 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 The price of Ethereum at this revised price.
Ethereum will reach $22,000 by 2030
In a recent blog postVanEck predicted that Ethereum could reach $22,000 by 2030. Before now, the asset manager predicted that the crypto token would reach $11,800 by 2030. However, VanEck suggested that they would become more bullish on ETH in anticipation of the Spot ETF on Ethereumwhich may start trading soon.
They noted that these Ethereum Spot ETFs have caused them to revise their previous forecasts as these funds will allow financial advisors and institutional investors to contain the cryptographic token. They believe that this category of investors could bring new money into the Ethereum ecosystem, further driving up the price of the crypto token.
VanEck predicts that the Ethereum network will likely continue to enjoy rapid stock market growth thanks to interest from traditional investors and Big Tech. They believe it, together with The domain of EETH among smart contract platforms, it could lead to “creating a path to $66 billion in free cash flow” for the network.
They base their projection of ETH’s valuation by 2030 on this, stating that these cash flows will go to Ethereum’s native token. An increase to $22,000 represents a return of approximately 487% from Ethereum’s current price and a compound annual growth rate (CAGR) of 37.8%. Meanwhile, Ethereum hitting $22,000 will give it a market capitalization of approximately 2.2 trillion dollars.
Highlighting the potential of Ethereum
VanEck seemed very optimistic about the Ethereum ecosystem as it argued that the network could disrupt existing financial businesses and the largest technology companies, including Google and Apple. Since Ethereum has earned a reputation as a platform for dcentralized applications (dApps)they took into account the market size of the business sectors that blockchain technology will disrupt when determining the future valuation of ETH.
The asset manager also highlighted how ETH benefits enormously from the potential of ETH since without the native token it is not possible to take any action on the network. Additionally, they noted how 80% of the revenue earned on the network is used buy back and burn Ethereum tokens in circulation.
Meanwhile, VanEck believes ETH is “a revolutionary asset with few parallels in the non-crypto financial world.” They called it “Digita Oil” as it is consumed by those who transact on Ethereum network.
THE asset manager he also called it “programmable money” and “yield producing product” due to the degree of automation of the Ethereum network and this validators earn returns on the crypto token when they stake their ETH. Finally, it has been called the “reserve currency of the Internet” as it serves as the “basic asset” for all assets and most digital assets with the ETH ecosystem worth over $1 trillion.
