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- Analysts from asset manager VanEck predict that Ethereum will hit $22,000 by 2030, noting that the network’s revenue per user exceeds that of most Web2 businesses with a higher market cap.
- Data from Bitwise shows that Ethereum has 900% more daily active users today than it did four years ago, with the rise of Layer2s credited for the rapid growth.
With the approval of the Ethereum ETFs by the US SEC, most analysts have made bold predictions about the future of the world’s largest altcoin, as Crypto News Flash has reported. VanEck has joined the bandwagon with one of the boldest predictions yet—Ethereum will hit $22,000 by the end of the decade.
ETH trades at $3,842, gaining 1.1% over the past day as its low volatility continues this week. Since the 20% surge in mid-May after the SEC approved the ETFs, the crypto has ranged between $3,650 and $3,850.
In a blog post on Wednesday, analysts from VanEck updated their ETH prediction, projecting that the top altcoin will continue to grow, driven by a strong value proposition to entrepreneurs and Big Tech.
They stated:
Should it do so while maintaining its dominant position among smart contract platforms, we see a credible path to $66B in free cash flow to token holders supporting a $2.2 trillion asset, or $22k per coin, by 2030.
Last year, the analysts predicted that ETH would hit $11,800 by the decade’s end. However, their evaluation of the network’s addressable market has changed since then. They say that Ethereum can now disrupt the $11 trillion finance and banking industry, the $1.8 trillion infrastructure sector, the $1.4 trillion AI sector and the $1.1 trillion marketing and advertising industry.
$22,000 by 2030 is the analyst’s reasonable prediction or their base case under which they consider Ethereum’s smark contract market share at 70% and the estimated revenue at $78 billion. In their bullish prediction, where Ethereum controls 90% of the smart contract market, and revenue hits $361 billion, ETH is expected to hit $154,000.
“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world,” the VanEck analysts say.
The analysts further noted that Ethereum generates more revenue than some of the Web2 industry’s most renowned companies, whose business models are studied as successful. On average, Ethereum generates $324.70 per user. In comparison, Uber is at $272, Robinhood is at $175, eBay is at $76, and Facebook is at $44. Venmo, at $12 per user, generates 27 times less income than Ethereum.
VanEck’s analysis is backed by data from Bitwise, which found that the average daily user numbers had skyrocketed over the past four years.
Bitwise revealed that in Q1 2020, the Ethereum ecosystem, including Layer 2s like Polygon, recorded 250,000 daily active users. Back then, L2s were only finding their footing, and most of the traffic was on the mainnet.
However, in the first quarter of this year, the network boasted 2.25 million users, a 900% growth in that time.
ETF or not, the Ethereum ecosystem is growing. Fast. pic.twitter.com/8XLtyN5dv5
— Bitwise (@BitwiseInvest) June 5, 2024
