Ark Invest Says ETH Could Hit $20 Trillion Market Cap in 2030

January 28, 2022 9:53 am

Ark Invest’s new report is making bold predictions such as the market cap of Ethereum to be able to reach $20 trillion in 2030 and how ETH will be the blockchain that will be able to have the most market share in DeFi.

This estimation means that this would equate the price of ETH to be around $170k-180k making this prediction an extremely bullish one.

The reasons included in Ark Invest’s  report include details on how Ethereum has been able to grow in utility and efficiency over the past few years.

The huge majority of the growth had actually happened in the past two years mainly due to the growth of decentralized finance (DeFi).

CoinTelegraph reports:

The prediction in Ark Invest’s report “Big Ideas 2022” is predicated on how quickly the Ethereum network has grown in utility and efficiency.

Ark described the appeal of DeFi, stating:

“Decentralized Finance promises more interoperability, transparency, and financial services while minimizing intermediary fees and counterparty risk.”According to Ark, smart contracts and decentralized applications on Ethereum are “usurping traditional financial functions at the margin.”

The report highlighted that banking and lending, exchanges, brokerages, asset management, insurance and derivatives can all be found on Ethereum-based smart contracts.

What’s more, DeFi is a lot more efficient, too. Ark estimated that DeFi outperformed traditional finance over the last 12 months in terms of revenue per employee from $88 million to $8 million.

The well known firm also gave a prediction for Bitcoin’s future growth as well where the report made claims that BTC would reach a price of $1 million by 2030.

The reasons provided in the report include its increasing usage in many emerging economies, its use as collateral for many crypto-backed loans, it’s use as a hedge against worries of inflation for fiat currencies, and its widespread reputation for being known as “digital gold”.

The firm also brings up how the growth of Ethereum and Bitcoin could revolutionize the energy production energy.

As of today, the mining industries of both consume massive amounts of energy, but is still profitable for many mining operations to continue.

Reports say that this increased demand for energy caused by the crypto industry will help spur research on how to acquire renewable carbon-free energy in an effort to be able to satisfy the demand without affecting the environment.

Yahoo reports on the ETF’s manager Cathie Wood’s specific comments:

The ETF manager said ethereum could “displace many traditional financial services” as decentralized finance gains traction, laying the groundwork for ether — ethereum’s native token — to compete as a global currency.

“As financial services move on-chain, decentralized networks are likely to take share from existing financial intermediaries,” the report said. Ark Invest predicts ether will be a primary beneficiary of this shift.

The release of this report from the firm coincides at a time where the crypto markets have declined significantly after the record highs achieved in the market in 2021.

The Federal Reserve is expected to continue having a hawkish position on the cryptocurrency industry in 2022 which is creating pressure for the markets and investors.

 

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