VanEck has raised its Ethereum price prediction from $11,800 to $22,000 by 2030, or in the next six years.
VanEck compares Ethereum's role in the defi ecosystem to "Digital Oil,", and expects the launch of the spot Ether ETFs to boost prices.
If the prediction holds true, Ethereum's market cap could reach $2.6 trillion, beating Bitcoin's current market cap.
This also presents a possible 578% increase, which is likely, but not guaranteed.
In a recent tweet, VanEck, a major Wall Street Investment Manager, and issuer/applicant for the spot Bitcoin and Ethereum ETFs stated that it had increased its 2030 price target for Ethereum from $11,800 last year to $22,000.
Let’s jump into the details of this new prediction, and what it might mean for Ethereum.
Is this $22k price target possible for Ethereum, or is it merely a pipe dream?
To begin with, VanEck sees Ethereum as one of the foremost financial assets, with only a few equals in the crypto and non-crypto financial industries.
In a June 5 blog post published by VanEck’s head of digital assets research, Matthew Sigel and two others, VanEck described Ethereum as ‘Digital Oil,’ as a way of highlighting its essential role in Ethereum’s ecosystem.
In the blog post, VanEck upped its $11,800 Ethereum prediction from last year to around $22,800, with this new target hinging on the incoming spot Ethereum ETFs in the US, which VanEck plans to list along with the 7 others.
Moreover, VanEck also predicted that the Ethereum ETFs on launch, are expected to see between $3.1 billion and $4.8 billion worth of inflows within the first five months of listing, which coincides with K33 Research’s outlook and is slightly more than Bloomberg analyst, Eric Balchulnas' $2 billion prediction.
According to VanEck, Ethereum is one of the forerunning defi protocols, boasting around 20 million active monthly users.
VanEck also notes that in the last year, Ethereum has processed around $4 trillion in transactions and has processed stablecoin transfers worth approximately $5.5 trillion, dominating the market with a current value of $3,849.92, a market cap of around $462 billion, and a trading volume of $14 billion at the time of writing.
Moreover, VanEck also states that Ethereum Revenue Per User is a lot more than that of several Web2 companies like Uber, Doordash and even Twitch.
Ethereum’s revenue per user
If VanEck's prediction for the second largest cryptocurrency holds, we might see Ethereum's market cap soaring to around $2.6 trillion, which is more than twice Bitcoin’s present market cap.
This will allow several investors to multiply their wealth rapidly, creating a new wave of millionaires and billionaires—all in the crypto market.
While Ethereum is currently as large and as successful as VanEck says, the road to $22,000 might not be so straightforward.
For example, Ethereum, under $4,000 is only trading at a fraction of this $22,000 price target.
To hit VanEck's target, Ethereum will have to rally by a staggering 578%, assuming a current price of $3,800.
Growing by this much between now and 2030 (6 years) might not be so straightforward, even for a highly established defi network like Ethereum.
There is also an issue of the ongoing regulatory issues being faced by the potential Ethereum ETF issuers, with Gary Gensler himself stating that approval will "take some time" in a recent CNBC interview.
Can Ethereum hit the $22,000 mark? Absolutely!
However, the possibility of Ethereum hitting this mark between now and 2030 remains for debate.
Considering how Ethereum has two more bull market peaks to go before 2030, we’d say that anything is possible.
Regardless of the outcome though, Ethereum’s journey promises to be eventful, with significant implications for the entire crypto market at large.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.