According to a new analysis from Cathy Woods’ ARK Invest, Ethereum (ETH) will reach or perhaps surpass a $20 trillion market valuation in the next ten years, implying a price of $170,000 to $180,000 per ETH.
The paper also anticipated that Bitcoin (BTC) would “certainly scale as nation-states recognize (it) as legal tender… By 2030, the price of a bitcoin might reach $1 million.”
ARK Invest is a technology-focused asset management firm with a $12.43 billion AUM based in the United States.
The estimate is based on how quickly the Ethereum network has expanded in utility and efficiency, according to ARK Invest’s report Big Ideas 2022. Decentralized finance has accounted for much of the increase in the last two years (DeFi). The attractiveness of DeFi, according to ARK, is as follows:
“Decentralized Finance promises more interoperability, transparency, and financial services while minimizing intermediary fees and counterparty risk.”
On Ethereum, smart contracts and decentralized apps (DApps) are “usurping traditional financial operations at the margin,” according to ARK. Banking and lending, exchanges, brokerages, asset management, insurance. Then, and derivatives are all found on Ethereum-based smart contracts, according to the paper.
Furthermore, DeFi is far more efficient. DeFi surpassed traditional finance in terms of revenue per employee during the last twelve months. That’s, according to ARK, by $88 million to $8 million.
According to the estimate, Bitcoin will be worth $1.36 million per BTC by 2030, with a market valuation of $28.5 trillion. The ARK researchers gave a projected future worth to each of Bitcoin’s eight use cases, then added them all up to get a BTC price estimate.
Bitcoin is expected to account for 50% of global remittances at 1.5x velocity, 10% of emerging market currency, 25% of US bank settlement volumes, 1% of global nation-state treasuries, 5% of global high net worth individual (HNWI) wealth, 2.55 percent of institutional asset base, 5% of cash from S&P 500 companies, and 50% of gold’s total market cap by 2030, according to the firm.
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