VanEck Analysts Raise Ethereum (ETH) Price Target to $22,000

TLDR

Active users of the Ethereum ecosystem have increased ninefold since 2020, with more than 2.25 million active users in Q1 2024. VanEck analysts predict that ETH may hit $22,000 in 2030, due to growing demand and solutions. Ethereum user numbers are part of the roadmap, with with founder. Vitalik Buterin, focusing on the main position using Layer-2 networks, VanEck analysts estimate the position that Ether ETF will soon be approved for trading on American stock exchanges, which will benefit financial advisors and institutional investors. Despite the low number of users, Ethereum will still generate three times more fees. From the upper layer-2 networks and Solana combined

The Ethereum ecosystem has experienced a dramatic increase in active users over the past four years, with a ninefold increase in daily active users since 2020.

According to data compiled by crypto ETF issuer Bitwise, the Ethereum ecosystem, the Layer-1 mainnet and Layer-2 scaling solutions such as Arbitrum, Polygon, Optimism, Base and zkSync had more than 2.25 million daily active users. First quarter of 2024, compared to 250,000 in Q1 2020.

This significant growth in user activity has caught the attention of analysts at VanEck, a popular crypto ETF issuer.

In a recent blog post, VanEck's head of digital assets research Matthew Siegel and his colleagues raised their price target for Ethereum, predicting that the cryptocurrency could reach $22,000 by 2030.

The analysts cited growing demand for Ethereum and solutions, as well as the expected approval of spot ether ETFs on US stock exchanges, as the main reasons for their bullish outlook.

We have raised our 2030 ETH price target to $22K, influenced by Ether ETF news, demo progress and our onchain data reading. Additionally, we analyzed how ETH and BTC perform in both traditional and crypto-only portfolios for optimal income. @Matthew_Siegel @Patrick_Bush_VE…

— Vaneck (@vaneck_us) June 5, 2024

The adoption of the Spot Ether ETF will allow financial advisors and institutional investors to hold Ethereum in their portfolios, benefiting from the pricing and liquidity advantages of ETFs. VanEck analysts predict a 2030 Ethereum price of $66 billion in free cash flow generated by the network and aggregated into the ETH token.

While Ethereum user numbers have decreased as a percentage of the entire ecosystem due to the migration of transactions to layer-2 networks, this development is part of Ethereum's roadmap.

Co-founder Vitalik Buterin has been focusing on using Layer-2 solutions to scale the main blockchain, which are similar to the sharding concept of the old Eth 2 scheme and can help encourage growth in different “subcultures” in the Ethereum ecosystem.

Despite the low user numbers on Ethereum's main network, the blockchain still generates three times more payments than the top layer-2 networks and Solana combined, demonstrating its value proposition.