Token Terminal, a blockchain analytics platform, has predicted that Ethereum (ETH), the world’s second most valuable cryptocurrency, could reach a value of over $36,800 by the end of the decade based on total addressable market projections.
In a detailed analysis of Ethereum on November 23, the analytics platform outlined several reasons that could drive the coin to significant levels, almost 18 times its current value.
Ethereum Is Projected To Process $14 Trillion In Value By 2030
According to the Token Terminal report, strengthening network effects, increasing token scarcity, and a successful transition to proof-of-stake (PoS) consensus are potential price drivers that may lead to Ethereum reaching $36,800. Ethereum’s first-mover advantage and network effects have given it a competitive edge over other smart contract platforms, such as Solana (SOL) and Cardano (ADA).
While users can utilize decentralized finance (DeFi) solutions in these competing networks, create non-fungible tokens (NFTs), and participate in web3 development, Token Terminal observes that despite Ethereum’s limited scalability and fluctuating gas fees, it is likely to dominate in the future.
In terms of future adoption, Token Terminal estimates that by 2030, approximately half of the finance industry’s trillion-dollar revenue will likely flow through Ethereum. This equates to over $14 trillion in value being settled on-chain, with Ethereum as the preferred network.
The finance industry generates over $28 trillion in annual revenue, with a compound annual growth rate (CAGR) of 7.5%.
This projected valuation expected to flow through Ethereum is more than 10 times the total crypto market as of November 2023, which was slightly over $1.4 trillion with Bitcoin commanding roughly 51%, according to CoinMarketCap.
Based on this outlook, the blockchain analytics platform suggests that the expected adoption through emerging verticals, including identity, content streaming, and the Internet of Things, could propel Ethereum’s growth in the next seven years.
Potential Challenges That Might Impact Adoption
Nevertheless, the study acknowledges that future challenges could impede adoption, potentially hindering growth and prices. The primary concern is the regulatory risks associated with crypto adoption, as governments may seek to interfere to maintain order.
Additionally, unforeseen changes to the network design tradeoffs, the success and subsequent dominance of layer-2 solutions prompting venture capitals to prioritize funding for off-chain projects, and the discovery of an on-chain bug leading to losses and denting confidence cannot be discounted in the long term, according to Token Terminal.
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