Crypto is recovering right now, prices are forming up and products are being launched. Some speculation is coming back into the space.
In this article, we will explore some of the most high potential coins in October and also about the latest research from VanEck, suggesting #ETH to $50,000 per coin by 2030.
ALT
$BTC is a leading indicator in the #crypto market, and its price gains typically precede those of altcoins. Altcoins tend to follow Bitcoin's lead and outperform during the later stages of a bull market.
While some altcoins may outperform Bitcoin over shorter periods, historically, Bitcoin has been a more reliable long-term store of value. I still think Bitcoin has to be the foundation of every crypto portfolio due to its long-term potential.
Looking back at previous bull markets, we can observe fluctuations in Bitcoin dominance. During the previous halving in May 2020, Bitcoin dominance initially fell from around 64% to 57%. However, during the subsequent bull market, Bitcoin dominance eventually climbed to 70%. Altcoins, on the other hand, experienced significant growth during the last stages of the bull market.
Currently, it appears that Bitcoin and $ETH are leading the market recovery, with other altcoins lagging behind. Altcoins' performance will dep on how the market reacts in the coming months.
Vaneck Valuation Methodology for Ethereum:
It's important to consider the context that Vaneck & other such institutions benefit from increased trading activity and may present a more bullish perspective on Ethereum.
Ethereum Valuation Methodology: Cash Flow Projections & FDV Calculation
We may potentially value Ethereum by estimating cash flows for the year that ended on 4/30/2030. We project Ethereum revenues, deduct a global tax rate and a validator revenue cut and arrive at a cashflow figure. We then apply multiple estimates by applying a long- term estimated cash flow yield of 7 minus the long term crypto growth rate of 4%. We then arrive at the fully diluted valuation ("FDV") in 2030, divide the total by the expected number of tokens in circulation, and then discount the result by 129% to 4/20/2023. You can see our revenue estimates in the table below with more detailed assumptions in the Ethereum Valuation Scenarios table. Please note that these assumptions and estimations should not be understood as facts.
However, VanEck's focus on cash flow projections and fully diluted valuation calculations could be seen as more bearish for Ethereum, as they compare it to assets like gold, which also lack significant cash flow but derive value from its store-of-value characteristics.
A currency or store of value can potentially reach much higher valuations than assets valued based on equity valuation models. Bitcoin is heading towards a valuation in the trillions, similar to a currency, and Ethereum should aim for a similar status rather than solely being seen as a platform.
