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Ethereum Price Will Hit $22,000 by 2030, VanEck Predicts
Global asset manager VanEck predicted on Wednesday that the price of Ethereum will reach $22,000 by the end of the decade, dubbing the cryptocurrency “digital oil” in a new report. This would represent a 468% increase over the current Ethereum price.
While Ethereum generated $3.4 billion in revenue last year, VanEck also predicts that number to reach $51 billion by 2030.
“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world,” the report stated. “The Ethereum network will likely continue its rapid growth in market share from traditional financial market participants and, increasingly, Big Tech.”
VanEck characterized Ethereum as the centerpiece of its own financial system, as its network already secures more than $90 billion in stablecoins, around $7 billion in tokenized assets, and $308 billion in digital assets.
At the same time, VanEck sees Ethereum making inroads outside of crypto. Based on the size of the business sectors that applications built on Ethereum could disrupt, VanEck estimated that the network’s total addressable market is $15 trillion. These opportunities largely lie in finance, banking and payments, VanEck said.
Ethereum could also find roles in infrastructure and artificial intelligence, the company added, as well as in marketing, advertising, social media and gaming.
The report highlighted some of the distinct aspects of Ethereum as a network and asset, from its nature as “programmable money” to a “productive commodity.” Notably, VanEck’s report calls Ethereum the “internet’s reserve currency,” central to its massive ecosystem and layer 2 networks.
VanEck’s report comes not long after the Securities and Exchange Commission approval of Ethereum ETFs in cash. Allowing mainstream investors to gain exposure to cryptocurrency in a traditional brokerage account, the move also had implications for Ethereum’s regulatory status.
For crypto natives, the concept may be basic, but its significance was emphasized by VanEck: to send Ethereum or engage with smart contracts, a user needs to spend Ethereum in gas fees, which are then removed from circulation through burning. . In essence, VanEck said this dynamic benefits Ethereum holders doubly: supplying demand and reducing supply.
The asset manager expects Ethereum to also disrupt established tech giants like Google and Apple as a platform for developers to create consumer-facing apps. While companies earn about 30% of revenue from applications hosted on their respective digital stores, VanEck said Ethereum currently receives about 24% of revenue through gas fees.
“Compared to data-centric social media platforms like Facebook, we believe Ethereum can enable more capable and profitable applications for entrepreneurs,” the report stated. “As more data is generated in public and more commerce is removed from expensive and closed financial tracks, trade moats will erode.”
Edited by Ryan Ozawa.