Ethereum (ETH) surpassing Bitcoin (BTC) as the largest crypto ecosystem, has been a major topic of debate over the past few years. The event is sometimes dubbed “the flippening.” However, regardless of ETH becoming the number one crypto, a report by VanEck said that the token could reach $50,000 in 2030. In the first six months of 2023, ETH has risen by around 45%, which is quite impressive. BTC, on the other hand, has increased by as much as 57%.
VanEck’s valuation method is based on a number of fundamental components. The first part is Ethereum’s business model, which mainly depends on transaction fees. The second part is the ETH coin supply, which falls over time and supports the crypto’s price to increase. Additionally, the third part is what VanEck referred to as the “broad market capture strategy.” In essence, it means that Ethereum is currently involved in almost everything blockchain-related.
Can Ethereum realistically reach $50k?
ETH is one of the most development-heavy blockchain projects in the industry. This is a fundamental metric for future growth. Although rival networks have appeared, none are as significant as ETH. Moreover, the recent pressure from regulators has greatly affected rival networks like Solana (SOL), Cardano (ADA), and Polygon (MATIC). All three were named by the U.S. SEC (Securities and Exchange Commission) in its suit against Coinbase. However, Ethereum (ETH) was said to not be a security. This keeps ETH at a fairly safe distance from the recent chaos.
Additionally, ETH has a lot of room to grow. The difference between the largest and second-largest crypto projects is massive, and the gap could be lessened in the future. Moreover, ETH has a lot more use cases than BTC. Therefore, it could see even greater adoption in the years to come. In fact, the “flippening” might very well happen within a few years. Therefore, VanEck’s forecast of ETH reaching $50k by 2030, seems very possible. At press time, ETH was trading at $1,745.50, down 0.5% in the last 24 hours.