- VanEck is bullish on Ethereum, projecting a $22,000 to $154,000 top by 2030.
- The bullish projection is hinged on its ETF product and smart contract functionalities.
Global investment manager VanEck forecasts the price of Ethereum (ETH) to reach $22,000 by 2030, representing about a 472% increase from its current price level.
VanEck Goes Bullish on ETH
In a more bullish prediction, VanEck wrote in a recent report that ETH could get to $154,000 by 2030. This represents a mega 3,905% increase according to the current price levels. This bold forecast comes despite a recent decline in the crypto market that resulted in ETH falling to $3,687.
Nonetheless, VanEck’s bold prediction is based on an increase in Ethereum’s free cash flow. Notably, this is the amount of Ethereum that becomes available for its network operations after deducting all associated costs like smart contracts and gas fees used for transactions.
“We project ETH’s 2030 valuation based upon a forecast of $66 billion in free cash flows generated by Ethereum and accruing to the ETH token,” VanEck noted.
While comparing Ethereum to some well-known brands, the investment manager says Ethereum currently generates more revenue per user. VanEck added that it categorizes Ethereum as a business similar to the Google Play or Apple App Store.
According to the report, Ethereum’s monthly active users each generates $172 in annual revenue. Comparing this figure to other notable brands, monthly active user generated for Apple Music generated $100; Netflix, $142; and Instagram, $25.
Ethereum Not Without Challenges
While VanEck remains optimistic about Ethereum’s future price movement, the firm also acknowledges that the cryptocurrency faces regulatory risks. It is well known that the classification of Ethereum is still unresolved.
As previously reported by Crypto News Flash, the US Securities and Exchange Commission (SEC) is investigating whether or not Ethereum should be classified as a security. VanEck noted that if Ethereum is eventually designated as a security, many Ethereum businesses will have to register with the SEC or face serious legal consequences.
Another challenge raised by VanEck is the influence of large financial firms on government regulations. According to VanEck, when people who used to work for these firms get government jobs, they might be more likely to create regulations that benefit their old employers. If this scenario happens, it may become harder for competitors like Ethereum to enter the market.
It is worth mentioning that VanEck is amongst other applicants who recently secured approval for its spot Ethereum Exchange-Traded Fund (ETF) from the markets regulator. Per a report from Crypto News Flash, VanEck recently amended its S-1 form with the SEC as it awaits approval from the regulator.
At the time of this writing, Ethereum is trading at $3,687, demonstrating a 3.2% decrease in the past 24 hours. However, the trading volume took a different path, increasing by 41.9%. To $16,487,965,687.
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