Ethereum’s spot price could be between $12,000 and $22,000 by the end of this decade in an optimistic scenario, according to two analyst estimates from cryptocurrency broker StoneX Digital and asset manager VanEck.
Matthew Sigel, head of digital asset research at VanEck, predicts that the Ethereum network could generate up to $66 billion in free cash flow per year by 2030, which could push the price of ETH up to $22,000 per token.
StoneX data scientist David Kroger also noted that ETH prices could climb to around $4,600 in the next 18 months. However, Kroger added that given some of the technological advancements Ethereum is working on, the price could go as high as $12,621.
What are Ethereum price predictions based on?
These estimates are based on expectations that Ethereum will transfer value to ETH holders from transaction fees, along with its ever-increasing transaction volume. Sigel noted that Ethereum processed approximately $4 trillion worth of settlements and $5 trillion worth of stablecoin transfers last year, putting Ethereum past PayPal and approaching networks like Visa.
Sigel said that Ethereum has generated $3 billion worth of transaction fees (in ETH) since its launch in 2015, and that mechanisms that increase the value of ETH include “burning” a portion of transaction fees and distributing new ETH rewards to stakers.
Sigel also suggested that revenues, which fell after Ethereum’s March Dencun update reduced transaction fees by 95 percent, could recover in the second half of the year.
David Kroger, on the other hand, emphasized that the demand for decentralized alternatives such as Ethereum has increased as trust in centralized institutions decreases globally. He added that this demand is especially evident in regions outside the US.
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