Despite the latest drop across the board for cryptocurrencies to start 2022, Ark Invest’s Cathie Wood is looking towards the long term and sees Ethereum reaching a $20 trillion market cap by the year 2030.
The second leading cryptocurrency based on market cap has seen its price drop 30% so far in 2022. That comes after reaching its own all-time high in November along with bitcoin.
Nonetheless, it’s important to see the forest through the trees. In the long-term horizon, Ethereum’s use case could continue to expand exponentially.
“The second-largest cryptocurrency, according to Ark Invest, will meet or surpass a $20 trillion market capitalization by 2030,” a Markets Insider report says. “Each coin would be priced at around $170,000-$180,000. Based on its current price of about $2,480, ether would have to jump by about 7,200% to meet the firm’s target.”
“As financial services move on-chain, decentralized networks are likely to take share from existing financial intermediaries,” a report by Ark Invest says.
Ethereum’s blockchain network forms the basis for other developers to create their own cryptocurrencies. Given that specific use case versus bitcoin’s utility as a store of value, Ethereum has the potential to “displace many traditional financial services,” according to Wood.
Ethereum Fees Drop
Another case for increasing Ethereum demand is a drop in fees. The second leading cryptocurrency’s fees have fallen along with its price, giving more reason for users to transact with Ethereum.
“Ethereum’s average network fees have dropped to the lowest value in 30 days at 0.0096 ether or $24.64 per transaction,” a Bitcoin.com article says. “Median-sized ethereum fees are lower today as well, as fees are between $8.37 to $10.82 per transaction as ether fees haven’t been this low since January 1.”
In the meantime, more Ethereum support is rising amongst the developer community. Take, for example, Etherscan — an application that helps make the Ethereum blockchain network more accessible to the masses.
“The Etherscan app keeps track of blockchain transactions on the Ethereum network,” a Coin Telegraph article explains. “The app then displays the results like a search engine.”
“This allows users to find the details of transactions on the Ethereum blockchain, which may give someone peace of mind if their transferred funds have not yet appeared in their wallet,” the article adds further.
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