VanEck believes Ethereum (ETH) will be worth about $22,000 by 2030, the asset manager said in a comprehensive analysis published on June 5.
The forecast, developed by the company’s digital asset research team led by Matthew Sigel, highlights Ethereum’s strong growth potential across both traditional and cryptocurrency-focused portfolios.
VanEck’s analysis believes the optimistic price target is due to Ethereum’s expanding role as a high-growth internet-based commerce system that could disrupt the traditional financial sector and big tech platforms.
The report highlighted Ethereum’s significant user base and economic activity, noting that the network currently supports approximately 20 million monthly active users, facilitates $4 trillion in annual payment value, and oversees $308 billion in digital assets.
Market cap: $2 trillion
VanEck’s ETH valuation model is based on projections of $66 billion in free cash flow by 2030, the amount generated by blockchain networks, and a valuation multiple of 33x for that cash flow.
This model considers Ethereum’s potential to disrupt a variety of business sectors, including finance, marketing, infrastructure, and artificial intelligence (AI).
According to reports, the Ethereum network is poised to capture significant market share from traditional financial markets and technology giants.
If Ethereum maintains its dominance on smart contract platforms, VanEck could generate $66 billion in free cash flow (the amount generated by the blockchain network) for token holders, resulting in a market cap of $2.2 trillion and a price of $22,000 per ETH. Check the trusted paths that support . Until 2030.
a revolutionary asset
The company highlighted the wide range of use cases for ETH, including:
“We believe that ETH is a revolutionary asset that is unrivaled in the non-crypto financial world.”
VanEck cited ETH’s role as “digital oil” consumed on-chain and called it “a programmable currency and a revenue-generating commodity.”
It also referred to ETH as an internet-ready currency that prices activities and assets on Ethereum’s billion-dollar ecosystem and connected blockchains.
According to the report, Ethereum generated $3.4 billion in revenue over the past year, surpassing some web2 apps such as Etsy, Twitch, and Roblox. Meanwhile, with 20 million monthly active users, it surpasses Instacart, Robinhood, and Vrbo.
VanEck added that ETH offers cost-saving capabilities, better interconnectivity to social applications, opportunities to share revenue with end users, and a foundation for AI applications.
investment risk
While the report is optimistic about the future of Ethereum, it also highlights some of the risks associated with investing in ETH.
One major concern is Ethereum’s reliance on speculative activity, which can pose significant downside risk if market sentiment changes.
Regulatory changes pose another risk because they could classify ETH as a security, imposing strict legal requirements on Ethereum-based businesses. The competitive environment is also a threat as emerging technologies such as Solana are challenging its market dominance.
Additionally, government actions to control non-state financial systems may have a negative impact on Ethereum’s growth prospects.