Ethereum Future Value: VanEck Predicts $2.2 Trillion Market Cap By 2030

Renowned asset management company VanEck has published a fresh analysis on Ethereum, the world’s second-largest cryptocurrency. The recent approval of spot Ether ETFs on U.S. stock exchanges has significantly boosted the token’s visibility and acceptance in the broader financial market.

This development allows financial advisors and institutional investors to hold Ether with the security provided by qualified custodians, while also enjoying the pricing and liquidity benefits that ETFs offer.

In its latest report, VanEck has reassessed the core investment proposition of Ethereum, with a particular focus on how Ether complements Bitcoin [BTC] within a traditional 60/40 portfolio, examining the balance between risk and return.

The approval of Ethereum ETFs has enhanced the network’s appeal to crypto entrepreneurs, traditional financial market players, and major tech companies, according to VanEck’s assets under management (AUM). If Ethereum maintains its dominance among smart contract platforms, it could generate $66 billion in free cash flow for token holders, potentially valuing the network at $2.2 trillion, or $22,000 per coin, by 2030.

Future Of Ethereum: VanEck Projects $4 Trillion Settlement & $66 Billion Free Cash Flow

Moreover, with approximately 20 million active users each month, the Ethereum network has processed $4 trillion in value and enabled $5.5 trillion in stablecoin transactions over the past year. However, VanEck’s 2030 valuation for ETH hinges on a projection of $66 billion in free cash flows attributed to the ETH token, applying an estimated 33x multiple to those cash flows.

The analysis starts by evaluating the market size of industries likely to be disrupted by blockchain applications, which is projected to create a total addressable market (TAM) of $15 trillion.

We forecast Ethereum’s valuation for 2030 based on an anticipated $66 billion in free cash flows generated by the Ethereum network and attributed to the ETH token. Since Ethereum serves as a platform for various applications, we begin our valuation by assessing the market size of the industries that blockchain technology will impact. The estimated TAM is $15 trillion, derived from the annual revenues of these industry sectors.

As Ethereum continues to develop and broaden its application scope, the model takes into account increased ETH supply reduction, greater market penetration, and higher rates of economic activity. However, these factors mirror the network’s strengthening fundamentals, recent technological advancements, and the evolving regulatory environment in the United States.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.