Ethereum
What will happen if VanEck’s Ethereum price prediction of $22,000 comes true?
It will be huge when ETH, which is trading below the $4,000 range, hits the $22,000 mark. For some, this might be impossible, but analyzing Bitcoin’s performance over the years raises hopes and does not necessarily make it impossible. Additionally, Ethereum is the second largest cryptocurrency on the market, both in terms of popularity and market capitalization, so the prediction could come true. But what’s wrong with this Ethereum price prediction, and what will happen if the price hits the $22,000 mark? Let’s discuss it in this blog.
VanEck Says Ethereum Price Will Reach $22,000 by 2030
VanEck, a famous Wall Street investment manager, is an Ethereum enthusiast who believes that:
ETH is a revolutionary asset with few equivalents in the non-crypto financial world. ETH can be considered “digital oil” because it is consumed by participating in activities on Ethereum.
But that’s not all, as he recently posted on Ethereum ETF
. VanEck and the team are trying to enter the Ethereum ETF market by listing their ETF and are very excited about it.
Even before the ETH ETF’s approval, he predicted that ETFs could generate $3.1 billion to $4.8 billion in inflows in the first five months after listing. And now, after the approval, it has released a prediction on the price of Ethereum considering the influence of the Ethereum ETF.
The post states: “We increased our 2030 ETH price target to $22,000, influenced by Ether ETF news, progress, and our reading of on-chain data.”
We increased our 2030 ETH price target to $22,000, influenced by Ether ETF news, scaling progress, and our reading of on-chain data. Additionally, we analyzed the performance of ETH and BTC in traditional and crypto-only wallets for optimal returns. @Matthew_Sigel @Patrick_Bush_VE…
–VanEck (@vaneck_us) June 5, 2024
It further provides a detailed report authorized by Denis Zinoview, Matthew Sigel and Patrick Bush, explaining how this will be possible. This $22,000 target is the base price target. The report actually included the bull and bear price targets of $154,000 and $360.
What will happen if this prediction comes true?
Ethereum is among the largest digital economies, where 20 million monthly users remain active on the network. In one year, it has processed $4 trillion in transactions and transfers of stable coins
worth around $5.5 trillion. Additionally, it has a value of $3,849.92, with a market capitalization of $462 billion and a trading volume of $13.9 billion, highlighting its dominance in the market.
If VanEck’s Ethereum price prediction comes true, the economy will become worth $2.6 trillion. It will become even bigger than Bitcoin, which is worth $1.3 trillion with a BTC Price of $71,000. Every trader who holds Ethereum will gain six times the value, creating millionaires and billionaires.
For example, a person who invested $10,000 to buy Ethereum at the current price, this investment will yield approximately 2.6 ETH tokens. Once the price hits $22,000, the same 2.59 ETH will be worth $57,142, making $47,142 in profit. The calculation can continue, and the $20,000 investment will yield $94,285 in profit, $50,000 will yield $235,714 in profit, and so on.
Can Ethereum price climb to $22,000?
VanEck’s prediction is supported by several factors, including Ethereum’s dominance among all Smart contracts platforms. He also envisioned a way to generate $66 billion in cash flow, which will be generated by the network to support this $2.2 trillion capitalization once the ETH price hits $22.00.
He highlighted that this rise to $22,000 would be driven by many growth factors, including the utility of blockchain, the growth of digital finance and AI by 2030.
However, certain constraints make it difficult to envisage such enormous growth. Ethereum Price is almost a sixth of the $22,000 forecast and hasn’t been as close to that. Although Ethereum is among the most demanded networks, it will be difficult to reach such a level.
Additionally, the constant fear of being classified as a security guard will always be haunting. THE SECOND approved the Ethereum ETF, but the classification is still uncertain. If Ethereum is classified as a security, it will limit the development and price of ETH.
Continue reading Can BNB price rise higher than this new ATH? Analysts take