Ether (ETH): Market capitalization to reach $20 trillion by 2030
Ether (ETH): Market capitalization to reach $20 trillion by 2030

A new report from ARK Invest suggests that ether's market capitalization will reach $20 trillion and bitcoin's (BTC) price will exceed $1 million by 2030, based on bitcoin's use cases and how ether captures TradFi's market share.

Predictions made in ARK Invest report

A new report from ARK Invest, a company led by Cathy Wood predicts that ether (ETH) will reach or exceed a market capitalization of $20 trillion over the next 10 years, which would correspond to a price of $170,000 to $180,000 per corner.

The report also predicts great prospects for bitcoin (BTC), saying it is "likely to grow as nation-states adopt it as a legal tender...the price of bitcoin could exceed $1 million by 2030."

ARK Invest is a U.S.-based technology-focused asset management firm with $12.43 billion in assets.

ARK Invest's "Big Ideas 2022" report predictions are based on the rapid growth in utility and efficiency of the Ethereum network. Much of the growth over the past two years is being diverted to decentralized finance (DeFi). 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 (DApps) on Ethereum "usurp traditional financial functions at the margin." The report pointed out that banking and lending, trading, brokers, asset management, insurance and derivatives can all be found in Ethereum-based smart contracts.

In addition, DeFi is also much more efficient. ARK estimated that DeFi has surpassed traditional finance in revenue per employee over the past 12 months, $88 million versus $8 million.Saying that it is "likely to grow as nation-states adopt it as a legal tender...the price of bitcoin could exceed $1 million by 2030."

ARK Invest is a U.S.-based technology-focused asset management firm with $12.43 billion in assets.

Predictions for bitcoin (BTC)

For bitcoin, the report predicts that the price of the first cryptocurrency is likely to reach $1.36 million with a market capitalization of $28.5 trillion by 2030. ARK researchers assigned an estimated future value to eight bitcoin usage scenarios, and applied all of these scenarios together to reach their conclusion on the price of bitcoin. 

The firm predicts that by 2030, bitcoin will account for 50% of global remittances, 10% of emerging market currency, 25% of U.S. bank settlements, 1% of the world's national treasuries, 5% of global high-net-worth individual (HNWI) wealth, 2.55% of institutional assets, 5% of S&P 500 company cash, and 50% of gold's total market capitalization.

ARK also claimed that bitcoin mining "could revolutionize energy production." While global concerns have been raised about the huge amount of energy that bitcoin mining requires, the researchers believe that "this activity encourages and generates more electricity from carbon-free renewable sources."

"The addition of bitcoin mining to the toolbox of energy developers is expected to increase the overall addressable market for renewable and intermittent energy sources."

According to CoinGecko, both ether and bitcoin have had a rough go of it over the past seven days, falling 22.2 percent and 13 percent respectively.

Admittedly, the items outlined in this article are only predictions. However, they may come true. Therefore, they should be taken into account. Who knows, the next few years may bring more surprises!

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Nathan George

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