In a surprising turn of events, VanEck, a leading asset management company, has significantly lowered its long-term price forecast for Ethereum (ETH). Matthew Siegel, head of digital asset research at VanEck, announced that the firm has adjusted its 2030 price target for Ethereum from $22,000 to just over $7,300. This represents a dramatic 67% decrease and has garnered considerable attention from investors and analysts across the globe.
VanEck Slashes 2030 ETH Price Target
Matthew Siegel recently took to social media to reveal that VanEck has made a substantial reduction in its 2030 price prediction for Ethereum (ETH), lowering the optimistic estimate from $22,000 to just over $7,300. This unexpected update highlights a significant 67% decline in the forecast. Initially, VanEck’s projection included several optimistic scenarios, with Ethereum prices estimated at $22,000 for a base case, $154,000 for a bull case, and an extraordinary $360,000 for a bear case.
However, after a thorough re-evaluation, this ambitious forecast has been adjusted, considering Ethereum’s recent performance, which has been overshadowed by major competitors like Bitcoin and Solana. This comes despite the U.S. Securities and Exchange Commission’s (SEC) surprising approval of spot ETH exchange-traded funds (ETFs) earlier this year.
Layer 2 Networks Take Center Stage
A pivotal factor influencing the revised forecast is the performance of Layer 2 (L2) networks. Initially, VanEck assumed an even distribution between Ethereum and L2 solutions for Total Value Locked (TVL) and Miner Extractable Value (MEV). However, recent data indicates a significant shift in revenue share, moving from an initial 90:10 split favoring Ethereum to a noteworthy 10:90 in favor of L2 networks. This shift highlights the growing dominance of Layer 2 solutions, which are effectively drawing value away from Ethereum.
Matthew Siegel emphasized that if this trend persists, Ethereum’s price target could further decrease, leading to the new estimated price of $7,333 by 2030.
What’s Next for Bitcoin?
While VanEck adjusts its forecast for Ethereum, the firm maintains an optimistic outlook on Bitcoin. Siegel predicts that the outcome of the upcoming U.S. presidential elections could serve as a catalyst for Bitcoin, potentially propelling it to new highs. He believes that a victory by Donald Trump might lead to an all-time high for Bitcoin shortly after the elections. Additionally, VanEck has set an ambitious 2030 target of $350,000 for Bitcoin, anticipating it will capture a significant share of the global gold market.
