While Bitcoin has made headlines in 2024 with the approval of spot exchange-traded funds (ETFs) and the upcoming halving, Ethereum (ETH) is potentially positioned to make waves in the coming months and years, according to Ark Invest CEO Cathie Wood.
Ark Invest held its Big Ideas event, an annual opportunity to review high-level market trends and potentially disruptive technologies. At one of these events, Wood asserted that Ethereum could reach a market capitalization of $20 trillion by 2032.
The current market cap of ETH is around $400 billion and has approached $500 billion in 2024. The market cap of the S&P 500 is around $40 trillion to 45 trillion. If ETH were to amass a market capitalization of $20 trillion, the price per token would be around $166,000.
The Ark Invest CEO believes the mainstream adoption of ETH as a financial tool will be the main catalyst for this price prediction. Ethereum is a way for people to access decentralized finance applications. The applications allow anyone to interact with different financial actions, such as trading, lending, borrowing and staking, without going through a centralized intermediary. If these applications are adopted on a large scale, the demand for ETH — and its price — could increase.
Talks of spot Ethereum ETFs are ongoing. Releasing the ETFs could have an impact similar to that of spot Bitcoin ETFs, which brought in huge amounts of inflows and propelled the price of Bitcoin higher.$BTC $ETH $BNB