VanEck Predicts Explosive Ethereum Growth: Could ETH Reach $2.2 Trillion?

Christian Encila

Last Updated: July 10, 2024 2:13 pm

3 mins read

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The second-largest cryptocurrency in the world, Ethereum, is headed for an explosive growth, says a new study by prominent asset management firm VanEck. According to the estimate, Ethereum‘s value might reach $2.2 trillion by 2030, which would put the coin’s price at almost $22,000. The success of Ethereum’s smart contracts and its ability to produce an unprecedented $66 billion in free cash flow by the decade’s end are crucial to this lofty forecast.

Traditional Finance Embraces Ethereum With ETF Approval

The latest green light for spot Ether ETFs on US stock exchanges is a major factor in VanEck’s optimistic prediction. By investing in these exchange-traded funds (ETFs), institutional investors and banks can get a taste of Ethereum without dealing with the hassle of actually owning the cryptocurrency.

Many more people, including financial advisors, institutional investors, and even large tech companies, are interested in Ethereum now that it is easier to access. The addition of these new stakeholders has strengthened Ethereum’s credibility and inspired faith in its future possibilities.

A Network Powerhouse With Room For Growth

With its large user base, the Ethereum network has handled transactions totalling about $4 trillion and enabled stablecoin transfers worth $5.5 trillion in the last year. This remarkable event highlights Ethereum’s role as an essential part of the decentralised finance (DeFi) system.

Ethereum is always changing, and VanEck’s analysis takes that into account. This includes things like the growing number of apps that use Ethereum as a platform, the burning processes that make ETH tokens even more scarce, and Ethereum’s ability to take a bigger chunk of the growing blockchain market. A whopping $15 trillion is the total addressable market (TAM) for blockchain applications, according to the analysis, meaning Ethereum has a tonne of space to expand.

MATIC market cap currently at $6.8 billion. Chart: TradingView.com

Will Ethereum Become The Silicon Valley Of Blockchain?

Ethereum might be the “Silicon Valley of Blockchain,” according to VanEck’s research, a place where new ideas can flourish and established markets be upended. With Ethereum’s smart contract capabilities, programmers may design and launch innovative apps and financial products that have the potential to transform industries as diverse as voting systems, identity verification, and supply chain management. With the growth of Ethereum’s ecosystem, the value of owning ETH tokens becomes more compelling, which could lead to the anticipated price increase.

Source: Business of Apps, Artemis XYZ as of 5/28/2024.

Ether Price Prediction

At the same time, the most recent prediction is that Ether will increase in value by 2.13%, hitting $3,861 on July 6, 2024. Several technical indications that point to an uptrend at the moment lend credence to this forecast. An optimism-inducing Fear & Greed Index reading of 78 for Ethereum indicates “Extreme Greed.” A high reading on this index, which analyses market sentiment and emotions from a variety of sources, suggests that investors are getting too optimistic, which might lead to a market downturn.

With 17 “green” days out of the last 30, Ethereum’s daily performance has been positive 57% of the time. It seems like there’s been a steady increasing trend with increases. Ethereum, meanwhile, has demonstrated a volatility rate of 11.30% for the last 30 days. Although the price is anticipated to rise, it may encounter considerable variations due to the relatively high level of volatility.

Featured image from InvestorsObserver, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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