In a recent report, investment management firm VanEck predicts that the Ethereum (ETH) token price could surge to $11,800 by 2030. The forecast is grounded on the revised valuation model estimating that Ethereum’s network revenues will significantly rise from the current $2.6 billion annually to $51 billion by the end of this decade, assuming Ethereum retains a 70% market share among smart contract protocols.
This report’s valuation methodology hinges on the projection of future cash flows. These projections factor in estimated Ethereum revenues, a global tax rate, and a share of the revenue for validators. The cash flow yield is set at 7%, with a 4% long-term crypto growth rate. This results in a fully diluted valuation (FDV) of Ethereum, which is then discounted by 12% to provide an estimate of Ethereum’s current value.
Ethereum’s revenues stem from transaction fees and Miner Extractable Value (MEV). Users bear these costs for…
