Global investment manager VanEck recently released a research report outlining Ethereum’s potential future performance. With the belief that Ethereum could become the dominant open-source global settlement network, VanEck presents its base, bear, and bull cases for the cryptocurrency. This article delves into VanEck’s estimations and methodology, shedding light on Ethereum’s trajectory toward becoming a store-of-value asset.
Ethereum’s Dominance and Potential :
VanEck’s report is rooted in the thesis that Ethereum will emerge as the leading open-source global settlement network, hosting significant portions of commercial activities in sectors benefitting from public blockchains. In a hypothetical scenario where Ethereum only holds 15% market dominance, the bear case predicts a decline to $343.29 by 2030. However, VanEck sets a price target of $11,848.62 in the base case, while the bull case reaches an optimistic $51,006 for Ethereum.
Ethereum’s Evolution Beyond Transactions :
According to VanEck, Ethereum’s trajectory goes beyond serving as a transactional currency or a consumable commodity like oil or natural gas. While it may not possess the complete store-of-value characteristics of Bitcoin due to its mutable code and evolving social consensus focused on utility, Ethereum is poised to become a valuable asset for state actors seeking to maximize human capital. Ethereum’s potential as a store-of-value asset is further examined in VanEck’s report.
VanEck’s Methodology and Confidence :
VanEck explains its estimation methodology by envisioning a portfolio of similar smart contract platforms. They anticipate the dominant platform capturing the majority market share by owning a collection of call options. With a strong belief in Ethereum’s potential, VanEck’s report aims to provide investors with insights into the digital asset’s future. The firm’s comprehensive analysis instils confidence in their projections, supporting their base and bull cases for Ethereum’s price growth.
VanEck’s research report on Ethereum presents an intriguing outlook for the cryptocurrency’s performance in the coming decade. With potential price targets ranging from $11,848.62 to an impressive $51,006, Ethereum holds promise as a store-of-value asset. VanEck emphasizes Ethereum’s evolution beyond mere transactions, projecting its value as a strategic asset for state actors seeking to optimize human capital. Investors are encouraged to explore the report further to gain deeper insights into the factors driving Ethereum’s growth potential.
