American investment management firm VanEck has raised the price target for Ethereum (ETH) from $11,000 to $22,000 for 2030. The prediction brings a huge chance of an upcoming bull run, which could drive ETH prices to an upscale of 60%, breaking its all-time high bar as well.
Ethereum ETF Likely To Boost ETH Prices: VanEck
VanEck in its report highlights that Spot Ethereum ETFs can give rise to market cap and demand of the token, just like how it did with Bitcoin. The report says that the Ethereum network is expected to maintain its fast market share expansion from traditional financial market participants and, increasingly, Big Tech, driven by a compelling value offer to entrepreneurs.
VanEck sees a plausible route to $66 billion in free cash flow to token holders supporting a $2.2 trillion asset, or $22k per coin, by 2030 should it do so while keeping its leading position among smart contract platforms.
The report also suggests a conventional 60/40 portfolio’s Sharpe ratio that can be significantly raised by adding a small amount of cryptocurrencies (up to 6%) with comparatively little effect on drawdown. For a crypto-only portfolio, an allocation of about 70/30 between Bitcoin and Ether yielded the best risk-adjusted returns.
Other investment parameters for Ethereum have also turned highly robust. Undertaking based on projections these projections result in a $66 billion in free cash flows produced by Ethereum and accruing to the ETH token by 2030. Based on those cashflows, VanEck estimates a valuation multiple of 33x.
ETH Bull Run Ahead?
With the soaring projection and price target for 2030, ETH prices rose nearly 2% in the trading day currently standing at $3,860.51, according to CoinMarketCap. A bull market is typified by a persistent upward trend in prices, regardless of the market—traditional stocks or cryptocurrency. This phase of growing prices is usually a three- to four-year cycle when it comes to cryptocurrencies.
But generally speaking, analysts define a bullish market as one in which prices have increased by at least 20% from their recent lows. This percentage gain denotes a notable upward trend in pricing, a sign of upbeat investor sentiment and optimism over the direction of the market. A bull market in cryptocurrencies can be caused by a variety of factors, including media attention, government legislation, technology breakthroughs, and market demand.
At present, Ethereum has increased in value by nearly 150% in the last 12 months. With a positive expectation of ETH trading at $6,500 during the year, the expected price target would mean a nearly 68% rise, according to Bankless Times calculation. Given this parameter, a bull run for the price is inevitable.
