Ethereum

Patrick

<ul> 
 <li><strong>VanEck, a global investment manager, predicts that Ethereum’s price will reach $11,800 by 2030, positioning it as a competitor to U.S. Treasury bonds.</strong></li> 
 <li><strong>The valuation analysis conducted by VanEck takes into consideration various factors such as transaction fees, miner-extractable value (MEV), and Ethereum’s market share in key sectors.</strong></li> 
</ul>  
<h3 id="strong-vaneck-s-ethereum-valuation-analysis-strong"><strong>VanEck’s Ethereum Valuation Analysis</strong></h3> 
<p>Global investment manager VanEck has released a <a href="https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-ethereum-price-target-118k-by-2030/">report</a> forecasting that the price of Ethereum (ETH) will surge to $11,800 by the year 2030, positioning the cryptocurrency as a formidable rival to U.S. Treasury bonds. The report, authored by Matthew Sigel, the head of digital assets at VanEck, and Patrick Bush, a research senior investment analyst, provides an in-depth analysis of Ethereum’s potential and outlines the valuation methodology employed by the firm.</p> 
<h3 id="strong-ethereum-s-revenue-projection-and-cash-flows-strong"><strong>Ethereum’s Revenue Projection and Cash Flows</strong></h3> 
<p>According to VanEck’s projections, the yearly average revenue generated by the Ethereum network is expected to soar from $2.6 billion to a staggering $51 billion by 2030, assuming Ethereum maintains a 70% market share among smart contract protocols. This surge in revenue would result in an estimated $42.90 billion in cash flows to <a href="https://www.crypto-news-flash.com/as-ethereum-eth-price-stagnates-analysts-predict-180-spike-for-inqubeta-qube-and-eos-eos/">Ethereum</a> after accounting for validator fees and global tax rates.</p> 
<h3 id="strong-target-price-and-discounting-strong"><strong>Target Price and Discounting</strong></h3> 
<p>As a result of this comprehensive analysis, VanEck establishes a base-case price target of $11,848 per Ethereum token by 2030. However, to account for the time value of money, the target price is discounted to a current price of $5,300, taking into consideration a 12% cost of capital derived from <a href="https://www.crypto-news-flash.com/charles-hoskinson-cardano-demonstrates-massive-growth-beating-ethereum-and-solana/">Ethereum’s recent beta</a>.</p> 
<h3 id="strong-ethereum-s-scalability-upgrades-and-cost-reductions-strong"><strong>Ethereum’s Scalability Upgrades and Cost Reductions</strong></h3> 
<p>VanEck’s report comes at a time when Ethereum is undergoing significant upgrades to enhance its scalability. One such upgrade, EIP-4844, commonly referred to as “proto-danksharding,” aims to address scalability concerns and is scheduled for implementation during the Deneb-Cancun upgrade in the latter part of Q3 or the first quarter of Q4 in 2023.</p> 
<p>The introduction of EIP-4844 is expected to substantially reduce the costs associated with utilizing Ethereum Layer 2 solutions. These cost reductions could reach levels up to 100 times lower than the current fees. While this may temporarily decrease the amount of <a href="https://www.crypto-news-flash.com/is-ethereum-a-deflationary-asset-report/">Ethereum</a> burned due to reduced fees, it is anticipated that the overall growth in Ethereum’s economic activity will drive increased value accumulation in the medium term.</p> 
<p>VanEck’s comprehensive report and valuation methodology provide valuable insights into Ethereum’s potential as a lucrative investment and a store of value. With projections indicating a substantial increase in Ethereum’s revenue and market share, investors and enthusiasts alike will be closely monitoring the <a href="https://www.crypto-news-flash.com/how-to-make-informed-crypto-investment-decisions/">cryptocurrency’s progress</a> in the coming years.</p>

Ethereum’s Price Forecasted to Reach $11,800 by 2030, According to VanEck Report

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