Renowned cryptocurrency analyst Lark Davis recently discussed some astonishing forecasts regarding Ethereum’s future, shared by the CoinSpeech team. You can find Lark Davis’s new video below.
The Projection That Melts Faces
In a recent video, Lark Davis delves into VanEck’s jaw-dropping price predictions for Ethereum, suggesting it could soar to $154,000 per coin by 2030. As Davis puts it, “Ethereum’s price could reach a whopping $154,000 per coin by 2030.”
Understanding VanEck’s Scenarios
VanEck, an ETF issuer, outlines three different scenarios for Ethereum:
- Base Case: $22,000 per ETH by 2030
- Bull Case: $84,000 per ETH
- Bear Case: $360 per ETH
Even the base case, which sees Ethereum at $22,000, would be a significant rise from its current valuation.
The Foundation: Market Share and Revenue
VanEck attributes these potential gains to Ethereum’s disruptive capabilities in various sectors, including finance, tech, and social media. The firm forecasts significant increases in market share and revenue, projecting Ethereum’s market share to rise from 58% to 70% in a base scenario and 90% in a bull scenario. Furthermore, it anticipates revenue growth from $3.4 billion to $79 billion in a base case, and $362 billion in a bull case. “VanEck estimates that Ethereum’s current smart contract market share is 58%,” noted Davis.
The Great Supply Shock
One of the most mind-boggling aspects covered is the potential for a severe supply shock. Since the approval of Ethereum ETFs, over $3 billion worth of Ethereum has been moved off exchanges into cold storage. “Only 10.6% of the total Ethereum supply remains on exchanges,” says Davis, emphasizing the scarcity that could drive prices up.
Staking and Re-staking: Locking Up Supply
Ethereum’s staking mechanism is another crucial element. The total amount of staked Ethereum has increased by 78% since April 2023, but still, only 27% of its circulating supply is staked. This is relatively low compared to other networks. Davis explains, “As ETH continues to grow, more ETH gets locked up in staking, leaving less in the open market.”
Institutional Demand Through ETFs
The anticipated Ethereum ETFs could further pressure the supply-demand balance. According to K33 Research, the new ETFs could absorb up to a million ETH in the first five months, which would be a significant portion of the available supply. Davis notes, “That’s around 1% of the total supply sucked away into these new products.”
Interestingly, BlackRock’s involvement could see Ethereum ETFs incorporating staking, generating substantial revenue through management fees and yields. As Davis suggests, “Once the ETFs finally start trading, I wouldn’t be surprised if the ETF issuers put pressure on the SEC to allow staking.”
So, where do you think Ethereum’s price is headed? According to Davis, his target is “$15K this market cycle.” Share your predictions in the comments below.