VanEck predicts that Ethereum will reach $22,000 by 2030, fueled by substantial growth in digital finance, AI, and blockchain functionality. A recent report from the American investment management company suggests that Ethereum’s involvement in finance, AI, and marketing positions it for a potential total addressable market (TAM) of $15 trillion by 2030.
This forecast comes after the SEC’s approval of Spot ETH ETFs, which has increased investor interest in Ethereum. VanEck’s optimistic outlook is based on Ethereum’s projected $66 billion in free cash flows by 2030, using a 33x valuation multiple.
Aside from ETF inflows, the upcoming US Non-Farm Payrolls report on June 7 could impact Ethereum’s price movement in June 2024. Currently, ETH is priced at $3,843, showing a growth of 0.72% in the last 24 hours.
Ethereum’s Dominance in the Digital Economy
Ethereum has established itself as a dominant force in the digital economy, with 20 million monthly active users. In the past year, it has processed $4 trillion in transactions and $5.5 trillion in stablecoin transfers. ETH holds approximately $91.2 billion in stablecoins, $6.7 billion in tokenized off-chain assets, and $308 billion in virtual currency.
VanEck’s analysis focuses on Ethereum’s potential to disrupt finance, banking, marketing, infrastructure, and AI. The projected $15 trillion TAM spans various industries, with Ethereum’s platform expected to generate significant income through a 7.5% penetration in banking, 20% in marketing, 10% in infrastructure, and 5% in AI.
Unique Value Proposition and Revenue Growth
According to VanEck, Ethereum’s unique value proposition as “Digital Oil,” “Programmable Money,” “Yield Bearing Commodity,” and “Internet Reserve Currency” forms the foundation of its growth potential. The blockchain’s revenue has surged, reaching $3.4 billion in the past year. This revenue benefits ETH holders through buybacks and burns that permanently remove 0.4% of the supply in six months.
Ethereum’s user base and revenue growth surpass traditional web2 applications like Etsy and Roblox. An average Ethereum user generates $172 in annual revenue, similar to Apple Music and Netflix, driving demand for ETH and benefiting all holders.
Ethereum’s competitive advantage lies in its lower cost structure compared to Apple and Google, with a lower take rate of around 24% expected to drop to 5-10% with Layer-2 adoption. This efficiency could attract more businesses and users to the platform.
VanEck also sees Ethereum playing a vital role in AI applications, providing the infrastructure for AI agents. By 2030, the AI sector could contribute $1.2 billion in revenue to ETH holders. With finance expected to be the main source of revenue for Ethereum, Layer-2 solutions will enhance scalability and drive future growth.
Disclaimer: This content serves as information and should not be considered financial advice. The opinions expressed in this article are personal and do not reflect The Crypto Basic’s views. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic bears no responsibility for any financial losses.