VanEck, a prominent investment manager, is optimistic about the future of Ethereum (
ETH
), predicting that it could reach a five-digit price in the coming years.
In a recent research publication, VanEck outlined its price targets for Ethereum for the year 2030. The base case scenario suggests a price of $22,000, representing a 472% increase from the current level. Meanwhile, the bull case scenario envisions a price of $154,000, a staggering 3,905% surge from the current price.
The investment manager attributes Ethereum’s potential price appreciation to the growth in its free cash flows – the amount of ETH available from the network’s operations after deducting all network costs like gas fees for transactions and smart contracts.
Describing Ethereum as a thriving digital economy with around 20 million monthly active users, settling $4 trillion in value and facilitating $5.5 trillion in stablecoin transfers in the past year, VanEck emphasizes the importance of the ETH token in this financial ecosystem.
VanEck projects Ethereum’s 2030 valuation based on an estimated $66 billion in free cash flows generated by the network and accruing to the ETH token.
Currently, Ethereum is trading at $3,845.
With $101.9 billion in assets under management, VanEck highlights that Ethereum generates more revenue per user than well-known brands like Apple Music, Netflix, and Instagram.
However, the investment manager also identifies regulatory risks as potential challenges for Ethereum. These risks include potential classification of ETH as securities, which could lead to regulatory hurdles for Ethereum-based businesses.
As the investment landscape evolves, it is essential for investors to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl provides valuable insights and updates for investors to stay informed and make informed decisions.