VanEck, the US-headquartered global investment manager, has shared its projected ETH 2030 price targets across base, bull and bear market scenarios, reevaluating its fundamental investment case for the Ethereum protocol’s native token.
In a report published on 5 June 2022, VanEcK analyzed the investment case for ETH, the second-largest crypto asset in terms of market capitalization or value. The leading asset manager also explored the interaction between ETH and bitcoin (BTC) in a traditional 60/40 portfolio, highlighting some key Ether investment risks.
Dubbing Ethereum as an “internet-native commercial system,” VanEck acclaimed the largest smart contract platform as a “successful digital economy” that attracts about 20 million active users monthly.
It further revealed that the Ethereum network has recorded over $4 trillion in settlement value and processed roughly $5.5 trillion in stablecoin transfers between June 2023 and June 2024.
Moreover, the report showed that Ethereum has been able to secure over $91.2 billion in stablecoins, $6.7 billion in tokenized real-world assets (RWA), and $308 billion in digital assets since its launch in 2015.
Recognizing Ether as the centrepiece asset of this flourishing blockchain ecosystem, VanEck confirmed that it has positions in ETH and BTC while weighing in on how far ETH would grow by 2030 across different crypto market cycles.
VanEck’s Projected ETH 2030 Price Targets
Describing ETH as the ‘digital oil’, a ‘programmable money,’ a ‘yield bearing commodity’ and an ‘internet reserve currency,’ the investment manager expressed optimism about the crypto asset’s price growth in the coming years.
Particularly, VanEck’s analysts shared their projected price targets for ETH by 2030 across three crypto market scenarios — base, bull and bear. The investment firm has projected ETH to potentially reach $154,000 per coin by 2030 under bullish market conditions. Conversely, it has forecasted the crypto asset to decline to $360 by the same year in a bearish scenario.
For a base market condition, VanEck has predicted ETH to hit $22,000 per coin by 2030, potentially resulting in a $2.2 trillion market cap for the utility token. The prediction translates to an increase of over 519% from ETH’s price of $3,550 at the time of writing.
“We project ETH’s 2030 valuation based upon a forecast of $66B in free cash flows generated by Ethereum and accruing to the ETH token,” VanEck’s analysts wrote. However, the report added that the Ethereum network must maintain its market share growth and dominant position among smart contract platforms such as Solana, Cardano and Avalanche to record this massive expected price surge.
In May 2024, the U.S. Securities and Exchange Commission (SEC) greenlit 8 spot Ether ETFs, including VanEck’s. These ETFs are expected to debut on U.S. stock exchanges in the coming weeks, potentially paving the way for ETH to achieve new all-time highs in 2024.
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