ETH - Just How Realistic Is a $50000 Price Target for Ethereum?
2023-06-14 06:01:00 ET
Through the first six months of 2023, Ethereum (CRYPTO: ETH) has been one of the top-performing cryptocurrencies, up more than 45% year to date. It now trades around $1,745, after briefly breaking through the $2,000 level earlier this year. However, Ethereum is still down by nearly 65% from its all-time high of $4,891.70.
Given Ethereum's performance this year, some investors are now recalibrating and putting more aggressive price targets on the token. Most recently, New York-based investment firm VanEck put out a head-spinning $50,000 price target for Ethereum by 2030. Given Ethereum's current price, that implies a more than 25x return. But just how realistic is that?
VanEck's valuation model is based on several key building blocks, so this is not the sort of pie-in-the-sky price target that is so commonly promoted by super-bullish crypto enthusiasts. The first building block is Ethereum's revenue model, which relies primarily on transaction fees. The second building block is Ethereum's coin supply, which is actually decreasing over time, helping to prop up the crypto's price. And the third building block is what VanEck calls the "broad market capture strategy" of Ethereum. Basically, this means that Ethereum is involved in just about everything blockchain-related these days.
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Just How Realistic Is a $50,000 Price Target for Ethereum?