Following Ethereum’s recent hard fork, which provides the ability to withdraw staked ETH and introduces a major new competitor to US T-bills, VanEck Ethereum reconsiders its 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. However, he predicts that it will potentially lead to a token price of $11.8k.
VanEck Evaluates Ethereum
VanEck is valuing Ethereum by estimating cash flows for the year ending April 30, 2030. In the Base Case scenario, he predicts the Altcoin to generate $51 billion in annual revenue by then.
VanEck’s analysis includes several factors such as transaction fees, MEV (Maximum Extractable Value) and the concept of “Security as a Service” to provide a comprehensive valuation methodology.
After deducting a validator fee of 1 and applying a global tax rate of 15%, projected cash flows to ETH reach $42.90 billion. Using a 33x free cash flow (FCF) coefficient and considering the 120.7 million token supply, VanEck achieves a Base Case 2030 Price Target of $11,848 per token.
Key Takeaways, Ethereum Price:
- It is estimated that the valuation of ETH will increase from $2.6 billion to $51 billion in annual revenue by 2030.
- Assuming a 70% market share among smart contract protocols, a token price of $11.8k is projected for Ethereum by 2030.
- The valuation methodology includes cash flow projections, validator fees and deductions for taxes, and the use of an FCF coefficient.
- Market capture analysis reveals Ethereum’s dominance in key industries such as transactions, finance, banking, payments, metaverse, social and gaming, and infrastructure.
- Considering Ethereum’s programmability, cross-chain capabilities, and the concept of “Security as a Service”, its potential as a store of value asset was explored.
According to data from CoinMarketCap, live Ethereum price today is $1,875.79 with a 24-hour trading volume of $9,361,683,038. Ethereum is up 3.32% in the last 24 hours.
As Ethereum continues to evolve and gain market share, its role as a leading smart contract platform and a potential store of value asset crypto- is becoming more and more evident in the world.
You can find the current price movements here.