Investment firm VanEck gave its ETH price forecast.
According to her optimistic scenario, the price of ETH will reach $51,006 by 2030, with a base figure of $11,800.
To calculate the price of ETH, VanEck used a cash flow valuation and fully diluted valuation (FDV) methodology.
VanEck, a $69 billion fund manager, has predicted the price of ETH in the foreseeable future. The company believes that the coin can reach $11,800 by 2030 thanks to the transition to the Proof-of-Stake consensus algorithm.
“In light of the recent Ethereum hard fork, in our opinion, a new serious competitor to US bonds is emerging. We have revised our valuation model and now see Ethereum network revenues growing from $2.6 billion to $51 billion in 2030. Assuming that ETH takes up 70% of the smart contract market, the price of Ether will reach $11,800 in 2030, with a discounted value of up to $5,300 today,” VanEck said in the report.
At the same time, $11,800 is the base scenario, and there is also an optimistic one – $51,006 per coin by 2030. At the same time, in the pessimistic version the figure is $343.
Table with possible ETH price in 2030 based on VanEck's own analysis.
Such significant differences are due to the fact that the introduction of blockchain and Ethereum technology into the real sector of the economy can take place according to several scenarios. VanEck experts view Ethereum as a kind of trading center that lives on the Internet and provides a safe place for Internet activity. VanEck bases its forecast on several factors:
Ethereum network revenue growth from $2.6 billion per year to $51 billion in 2030. Network revenues include transaction fees, MEV and Security as a Service.
Ethereum will capture 70% of the smart contract market, which is used for a variety of purposes including finance, banking, payments, metaverse, social media and gaming.
Growing demand for ETH as an investment instrument.
To calculate the price of ETH, VanEck used a cash flow valuation and fully diluted valuation (FDV) methodology. The firm took its estimated Ethereum cash flows as of April 30, 2030, subtracted the global tax rate and validator earnings, and arrived at its projected net cash flow. Then she applied a multiplier that took into account the expected return on cash flows at 7%, minus the long-term growth rate of cryptocurrencies of 4%. The company divided the resulting FDV for 2030 by the expected emission of ETH and reduced the result by 12%.