Despite the recent price drop for cryptocurrencies, Cathie Wood‘s Ark Invest evaluating Ethereum’s long-term outlook expressed the view that it will reach $20 trillion in terms of market capitalization by 2030.
The second top cryptocurrency has seen its price fall by 30% so far in 2022, after reaching its own all-time high last November, along with the top cryptocurrency, Bitcoin.
However, Cathie Wood notes that it is important for investors to see the forest and not the tree, as she estimates that in the long term the Ethereum use case could continue to expand exponentially and reach or exceed 20 trillion:
“The second largest cryptocurrency, according to Ark Invest, will reach or surpass a market capitalization of $20 trillion by 2030,” a Markets Insider report states, adding: “Each ETH will be priced at around $170,000-$180,000. Based on its current price of around $2,480, Ethereum would need to rise by about 7,200% to meet the company’s target.”
Transferred to the blockchain
For its part, Ark Invest itself points out, “As financial services move to the blockchain, decentralized networks are likely to take a cut from existing financial intermediaries.”
Ethereum’s blockchain network provides the basis for other developers to create their own cryptocurrencies. Given the specific use case against Bitcoin’s utility as a store of value, Ethereum has the potential to “displace many traditional financial services,” according to Wood.
Falling Ethereum fees
Another case of Ethereum demand growth is the drop in transaction fees. Its fees have fallen along with its price, giving users more reasons to trade with Ethereum.
Meanwhile, support for Ethereum in the developer community is growing:
“The Etherscan app monitors transactions on the Ethereum blockchain,” explains an article in Coin Telegraph, and continues: “The app then displays the results like a search engine. This allows users to find the details of their transactions on the Ethereum blockchain, which can give someone peace of mind if the money they have transferred has not yet appeared in their wallet,” the article further adds.
Previous Articles:
- Why Polygon (MATIC) is preparing to increase its price
- Brazilian central bank director: ‘Bitcoin is a financial innovation’
- Whatever Facebook does now will go wrong: Ethereum founder freezes Zuckerberg’s dreams for Web3
- Ethereum miners threaten to create their own blockchain
- Dubai’s futuristic Metaverse plan will increase GDP by $4 billion.
