Ark Invest predicts ETH to hit $20 trillion market cap by the year 2030
ARK invest's new report predicts Ether's market cap will be $20 trillion and the Bitcoin price will exceed $1 million by 2030 based on BTC's use cases and how ETH captures market share fro TradeFI
A new report from Cathy woods' ARK investment forecasts Ethereum (ETH) will meet or even exceed a $20 trillion market cap in the next 10 years, which equates to a price approx $170,000 to $180,000 per ETH.
Also predicted big things for Bitcoin (BTC), it is "likely to scale as nation-states adopt as legal...the price of bitcoin could exceed $1 million by 2030."
ARK invest is a tech-focused American asset management firm based in the United States with $12.43 billion AUM.
#BigIdeas2022 Report is here!— ARK Invest (@ARKInvest) January 26, 2022
To enlighten investors on the impact of breakthrough technologies we began publishing Big Ideas in 2017. This annual research report seeks to highlight our most provocative research conclusions for the year. Download! https://t.co/QvUbuqVpIL
The prediction in ARK invest's report big ideas 2022 is predicted on how quickly the Ethereum network has grown in utility and efficiency. Much of the growth over the past two years has come from 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 apps (DApps) on Ethereum are "usurping traditional financial functions at the margin." The report highlighted banking and lending. Exchange, brokerages, asset management, insurance, and derivatives can all be found on Ethereum based smart contracts.
DeFi is a lot more efficient too. ARK estimated that DeFi outperformed traditional finance over the last twelve months in terms of revenue per employee from $88 million to $8 million.
The report forecasts $1.36 million per BTC with a market cap of $28.5 trillion by 2030. ARK researchers assigned an estimated value to eight of Bitcoin's use cases and Used the sum of all of them to reach their conclusion about BTC price.
2030, the firm expects Bitcoin to account for 50% of global remittances at 1.5x velocity. 10% of emerging markets' currency 25% of US bank settlement volumes, 1% of nation-state treasuries worldwide. 5% of global high net worth individual (HNWI) wealth, 2.55% of institutional asset base, 5% of the cash from S&P 500 companies, and 50% of gold's total market cap.
Bitcoin mining "could revolution energy production." While global concerns have been raised about the tremendous amount of energy that Bitcoin mining requires, the researchers believe that "Bitcoin will encourage and generate more power from renewable carbon-free sources."
“The addition of Bitcoin mining into power developers’ toolboxes should increase the overall addressable market for renewable and intermittent power sources.”
According to CoinGecko ETH and BTC have had a rough past seven days by decreasing 22.2% and 13% consistency
Read: Ethereum dominates among developers but competitors growing faster