coinspress.com
VanEck, a global investment manager, has projected that Ethereum (ETH) could reach a price of $51,000 within a span of less than seven years, given certain favorable circumstances.
According to VanEck’s research report, the company presents three scenarios – base, bear, and bull cases – for Ethereum’s performance by the end of the decade.
To arrive at these estimates, VanEck explains its approach as follows:
“Our estimates are based on the hypothesis that Ethereum will emerge as the leading open-source global settlement network, hosting a significant portion of commercial activity from industries that stand to benefit the most by transitioning their operations to public blockchains. Assuming a portfolio of comparable smart contract platforms, we anticipate holding a collection of call options, with the dominant platform expected to capture the majority of the market.”
In VanEck’s bear case, where Ethereum loses its position as the top settlement system or smart contract platform and only holds a 15% market share, the estimated price for ETH by 2030 could plummet to as low as $343.29.
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However, if Ethereum’s progress continues favorably, VanEck presents a base case price target of $11,848.62 and a bull case target of $51,006.
VanEck suggests that Ethereum is on a trajectory to become a store-of-value asset, similar to Bitcoin, albeit with some distinct characteristics.
“Lastly, we propose that ETH is evolving beyond a mere transactional currency or a consumable commodity such as oil or natural gas. Although Ethereum’s code is mutable and its social consensus is subject to change based on utility, we believe ETH will become a store-of-value asset for state actors aiming to optimize human capital, in contrast to Bitcoin’s focus on stranded energy.”