Global investment manager VanEck has released a report that predicts Ethereum (ETH) will reach a price of $11,800 by 2030, making it a formidable competitor to traditional US Treasury bonds. The report, authored by head of digital assets Matthew Sigel and senior investment analyst Patrick Bush, employs a valuation methodology that accounts for transaction fees, Miner Extractable Value (MEV), and “security as a service.” After applying a 12% discount rate, VanEck calculates the present-day value of ETH to be $5,359.71. The analysis predicts that ETH network revenue will surge from an average of $2.6 billion per year to $51 billion by 2030, assuming Ethereum captures 70% of the market share for smart contract protocols.
VanEck determines a base-case price target of $11,848 per ETH token by 2030 by establishing a net cash flow of $42.90 billion and factoring in a 12% cost of capital, leading to their forecast of ETH’s ascent to $11,800 within the next decade. While there hasn’t been any significant increase in ETH’s price recently, VanEck’s report has drawn the attention of cryptocurrency enthusiasts and investors worldwide, as ETH continues to strengthen its position as a leading digital asset.
At the time of writing, Ethereum is trading at $1,870. ETH’s trading volume has decreased from $8.2 billion last week to $5.4 billion in the past 24 hours, indicating less trading activity in the Ethereum market. In contrast, ETH’s market capitalization has seen a more than $4 billion loss in the past 7 days while BTC’s market cap has fallen from $228.3 billion last Tuesday to $224 billion today.
The featured image is from Shutterstock and the chart is from TradingView.
