Will Ethereum Price Break $10k? VanEck Predicts $ETH Price To Reach $11.8k By 2030

In the wake of Ethereum’s recent hard fork, which introduced the ability to withdraw staked ETH and presented a significant new competitor to US T-bills, VanEck revisits its Ethereum estimates with a robust valuation model. VanEck’s analysis predicts that Ethereum’s annual revenue will rise from $2.6 billion to $51 billion by 2030, potentially leading to a token price of $11.8k.

VanEck Evaluates Ethereum

VanEck values Ethereum by projecting cash flows for the year ending on April 30, 2030. In their Base Case scenario, they anticipate Ethereum achieving $51 billion in annual revenue by that time.

VanEck’s analysis incorporates various factors such as transaction fees, MEV (Maximal Extractable Value), and the concept of “Security as a Service” to provide a comprehensive valuation methodology.

Deducting a validator fee of 1% and applying a global tax rate of 15%, the projected cash flows to Ethereum amount to $42.90 billion. Utilizing a free cash flow (FCF) multiple of 33x and considering a token supply of 120.7 million, VanEck arrives at a Base Case 2030 Price Target of $11,848 per token.

Read CoinGape’s ETH Price Prediction..

Key Takeaways- Ethereum Price:

1. Ethereum’s valuation is projected to rise from $2.6 billion to $51 billion in annual revenue by 2030.
2. Assuming a 70% market share among smart contract protocols, a token price of $11.8k is predicted for Ethereum by 2030.
3. The valuation methodology includes cash flow projections, deductions for validator fees and taxes, and the use of an FCF multiple.
4. Market capture analysis reveals Ethereum’s dominance in key sectors such as transactions, finance, banking, payments, metaverse, social and gaming, and infrastructure.
5. Ethereum’s potential as a store-of-value asset is explored, considering its programmability, cross-chain capabilities, and the concept of “Security as a Service”.

According to CoinMarketCap data, the live Ethereum price today is $1,875.79 USD with a 24-hour trading volume of $9,361,683,038 USD. Ethereum is up 3.32% in the last 24 hours.

As Ethereum continues to evolve and capture market share, its role as a leading smart contract platform and a potential store-of-value asset becomes increasingly prominent in the crypto landscape.

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