2030: "We think Ethereum rises to $22,000"

Asset manager VanEck estimates Ethereum could rise to $22,000 by 2030. What's behind this bold prediction?

It sounds almost too good to be true: According to VanEck, the price of Ethereum could rise to $22,000 by 2030 - and even $154,000 if everything goes perfectly. They see a lot of growth potential in blockchain due to developments such as Web3, AI and finance. Ethereum is becoming increasingly important in these areas.

That also means more cash is coming to Ethereum. The report's authors estimate that Ethereum could generate some $66 billion in cash flow by 2030, benefiting the ETH token. This will happen if the blockchain continues its rapid growth in market share, especially against traditional financial players and large tech companies.

The gates to a trillion-dollar market are opening. The report expects that there will be an increasing need for blockchain applications. This includes sectors such as finance, social networking, infrastructure and artificial intelligence. VanEck estimates the total market that Ethereum can address at $15 trillion.

Ethereum already has more revenue and users than many major Web2 brands. According to VanEck, Ethereum offers unique value propositions not available outside the crypto world, similar to the Apple App Store or Google Play. Therefore, the blockchain is becoming increasingly attractive to businesses, especially through significant cost savings.

Ethereum and its network effects The platform also has a rich ecosystem of applications. Its network effects are many times stronger than those of social networks. This pays off in the long run: "Consumers and app developers will move to Ethereum because it is cheaper and offers more value than current standard solutions," VanEck said.

Ethereum could also play an important role in AI development. There are "good reasons to believe that blockchains like Ethereum will become an important backend infrastructure for AI applications," such as distributing AI agents - autonomous software programs that can run through Ethereum as the largest smart contract platform.

However, the "strongest value proposition" remains the financial sector. 71 percent of total revenue comes from this sector.

Rising demand, rising price Rising demand for Ethereum applications could be positive for the price in two ways. "Because ETH must be purchased to use Ethereum, all ETH holders benefit from the demand-driven inflow," said Dr. K. K., president of Ethereum. In addition, "80 percent of this revenue in ETH is used to buy back and burn circulating ETH." This is a built-in "burning mechanism" that can ensure constant supply reduction.

A "digital mall" The report outlines a bright future. Ethereum is a "revolutionary asset," "digital oil," "programming money," "yielding asset" and "Internet reserve currency" all in one. If these value propositions materialize, tokenomics help and Ethereum achieves 70 percent market share, VanEck's prediction of $22,000 could come true by 2030.

But it doesn't have to. Regulations, interest rate trends and competition are some of the obstacles VanEck himself mentions.

And SEC-approved Ethereum spot ETFs have yet to be allowed to trade. The analysis relies heavily on inflows from institutional investors. One of the applications is from VanEck himself. But about that, the asset manager is certain: "We expect spot Ethereum ETFs to be admitted to trading on U.S. exchanges soon."