Valuation Methodology and Catalysts
The report was authored by Matthew Sigel, head of digital assets, and Patrick Bush, a research senior investment analyst at VanEck. It delves into detailed analysis behind their Ethereum price prediction.
VanEck’s valuation methodology accounts for transaction fees, Miner Extractible Value (MEV), and “security as a service.” After applying a discount rate of 12%, they calculate the present-day value of ETH to be $5,359.71.
However, VanEck’s analysis extends beyond valuation; exploring Ethereum’s potential in various sectors and its position as an asset within the cryptocurrency market. They predict that by 2030 network revenue will surge from an average of $2.6 billion per year to $51 billion assuming Ethereum captures around70%of smart contract protocol market share due to widespread adoption and utility.
Ethereum on Track for Growth Towards$11k+
The base-case scenario outlined by VanEck researchers paints a rosy picture of ETH’s future with projected revenue standing at $51 billion by the end of April 2030. Accounting for a validator fee of 1% and global tax rate at 15%, VanEck arrives at net cash flow of $42.90 billion for Ethereum.
Building on these findings, VanEck establishes a base-case price target of$11,848 per ETH token by 2030. To determine its current price, the projection is discounted to $5,300 factoring in a cost capital derived from ETH’s recent beta.
These figures demonstrate VanEck’s optimism towards Ethereum’s growth trajectory and solidify their prediction that it will reach $11,800 within the next decade.
Ethereum Market Update
Despite this optimistic outlook for Ethereum’s future value proposition as an asset with immense potential; over the past week or so there has been no noteworthy spike in ETH prices aside from a decrease of around1.7%. The second crypto asset by market cap also declined nearly 2% during this period while losing about1.8%in just one day alone recently (at time of writing).
At present,Ethereum trades at approximately$1870with tradingSponsored Product volume plummeting significantly from last week ($8.2B)to only$5.4Bin the past24 hours indicating less activity in this particular cryptocurrency market compared to others such as Bitcoin(BTC).
In contrast, the ETH market capitalization has seen a more than $4 billion loss in the past 7 days. While BTC’s market cap has plunged from $228.3 billion last Tuesday to $224 billion as of today.
VanEck’s report highlights Ethereum’s potential for growth and its position within the cryptocurrency market. Their analysis predicts that by 2030, network revenue will surge to an average of$51B per year withETH capturing around70%of smart contract protocol market share due to widespread adoption and utility.
While there have been no significant price spikes recently,Ethereum continues to solidify its position as one of the leading digital assets available on various exchanges worldwide; making it an attractive investment opportunity for many investors looking towards long-term gains over short term volatility or speculation.
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