VanEck has unveiled a bold new prediction for the price of Ether (ETH), the primary token of the Ethereum protocol, suggesting that it could soar to $22,000 by 2030. This forecast represents a significant increase from its current value of approximately $3,850.
The renowned global investment firm had previously suggested that Ether ETFs could surpass Bitcoin ETFs in terms of market size. In its most recent report on June 5, VanEck attributed this optimistic outlook to Ethereum’s disruptive potential and the revenue it generates for token holders.
VanEck’s thorough analysis highlights Ethereum’s influence across various sectors, such as finance, banking, payments, marketing, advertising, social media, gaming, infrastructure, and artificial intelligence. The firm believes that the approval of Ether ETFs, along with on-chain data analysis, supports their projection.
“We anticipate that spot Ether ETFs are on the verge of being approved for trading on U.S. stock exchanges,” the report stated. “This development would allow financial advisors and institutional investors to securely hold this unique asset with qualified custodians, while benefiting from the pricing and liquidity advantages typical of ETFs.”
VanEck attributes the potential surge of Ether to $22,000 to Ethereum-based technology’s capacity to deliver cost savings, improved efficiency, and enhanced transparency. According to the firm, this shift could potentially shift a significant portion of market share from traditional financial and tech institutions, which have a combined total available market of $15 trillion, to blockchain-based solutions.
The report also predicts that free cash flows from revenue generated by holding Ether could reach $66 billion by 2030, further reinforcing its expected valuation. Year-to-date, Ether has climbed by over 63% according to data from CoinMarketCap.
In related news, Ryan Sean Adams, co-founder of Bankless, highlighted that despite lower user numbers, the Ethereum blockchain generates three times more in fees than the top Layer 2 networks and Solana combined. Adams described this as a “modern miracle” in a post on June 6.
Layer 2 solutions pay Ethereum fees to settle transactions on the main chain and benefit from its security. VanEck’s proposed spot Ether ETF, with the ticker symbol “ETHV,” listed on the Depository Trust and Clearing Corporation (DTCC), is currently inactive and awaiting regulatory approval.
Last month, Crypto asset trading firm QCP Capital predicted a potential 60% surge in Ethereum’s price, pushing it to around $6,000 if a spot ETF is approved. This bullish outlook aligns with research firm Bernstein’s observation that the sustained demand influx seen by Bitcoin ETFs post-approval could lead to similar price movements for Ethereum.
Data from crypto.news’s price page indicates that Bitcoin (BTC) surged 66% from around $44,300 to a peak of $73,700 within two months following ETF approval. As Ether aims for $4,100 ahead of Spot Ethereum ETFs trading, ETFSwap gains traction in the market.