VanEck Raises Ethereum Forecast to $22,000

Influenced by news of exchange-traded funds and scaling developments, VanEck analysts have revised their Ethereum forecast for 2030, now anticipating prices of $22,000.

We’ve raised our 2030 ETH price target to $22K, influenced by ether ETF news, scaling progress, and our read of onchain data. Additionally, we’ve analyzed how ETH and BTC perform in both traditional and crypto-only portfolios for optimal returns. @Matthew_Sigel @Patrick_Bush_VE…

— VanEck (@vaneck_us) June 5, 2024

“We believe that spot ETH ETFs are close to approval and launch on U.S. stock exchanges. Such progress will allow financial advisors and institutional investors to hold a unique asset under the protection of qualified custodians and benefit from pricing and liquidity advantages,” the note states.

According to VanEck, due to its strong value proposition for entrepreneurs, the Ethereum network is likely to continue increasing its market share at the expense of traditional participants and major tech companies.

The company described Ethereum as a “successful digital economy,” attracting around 20 million active users per month, while facilitating a transaction volume of $4 trillion and stablecoin transfers amounting to $5.5 trillion over the past twelve months.

“Ethereum is a dynamic economic platform that can be called a ‘digital shopping mall.’ Its user base has grown by approximately 1500%, and the compound annual growth rate of revenue has been 161% since 2019,” added VanEck.

Over the past six months, 541,000 ETH worth $1.58 billion has been burned, accounting for 0.4% of the total asset supply. Thus, cryptocurrency holders benefit from the network’s operations, the company emphasized.

“We categorize Ethereum as a platform business similar to the Apple App Store or Google Play. However, the network has a significant advantage over Web 2.0, as it offers users and application developers unique value propositions unavailable outside of cryptocurrencies,” explained the experts.

VanEck is among the issuers that have applied to launch a spot exchange-traded Ethereum fund in the U.S.

Back in May, the SEC approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum. Trading will commence once the agency signs the registration statements on Form S-1.

Bernstein analysts predicted Ethereum could rise to $6,600 if the ETF is approved. According to K33 Research forecasts, the instruments could attract up to $4.8 billion in the first five months of trading.