ETH to hit $20 trillion market cap by 2030: Ark Invest

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Cathy Woods ’new ARK Invest report predicts that Ethereum (ETH) will meet or even exceed a market cap of $ 20 trillion within the next 10 years, which would equate to a price of around $ 170,000 to $ 180,000 per ETH.

The report also predicted big things for Bitcoin (BTC), saying it is “likely to climb when nation-states adopt (it) as a legal tender … the price of one bitcoin could exceed $ 1 million by 2030.”

ARK Invest is a US-based technology-focused US investment management firm with $ 12.43 billion. AUM.

The prediction in ARK Invest’s report Great Ideas 2022 depends on how fast 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 DeFi’s appeal, stating:

“Decentralized Finance promises more interoperability, transparency and financial services while minimizing intermediary fees and counterparty risk.”

According to ARK, smart contracts and decentralized programs (DApps) on Ethereum “usurp traditional financial functions at the margin”. The report emphasized that banking and lending, exchanges, brokerage, asset management, insurance and derivatives can all be found on Ethereum-based smart contracts.

In addition, DeFi is also much more effective. ARK estimates that DeFi has outperformed traditional finance over the past twelve months in terms of employee revenue of $ 88 million to $ 8 million.

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As for Bitcoin, the report predicts $ 1.36 million per BTC with a market limit of $ 28.5 billion by 2030. ARK researchers have assigned an estimated future value to eight of the Bitcoin use cases, and used the sum of all of them to reach their conclusion on BTC . price.

By 2030, the company expects Bitcoin to make up 50% of global remittances at 1.5x the rate, 10% of the currency of emerging markets, 25% of U.S. bank settlement volumes, 1% of nationwide treasuries globally, 5% of world high. net worth individual (HNWI) wealth, 2.55% of institutional value base, 5% of S&P 500 companies’ cash, and 50% of total gold market share.

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ARK also argued that Bitcoin mining “could revolutionize energy production.” While global concerns have been raised about the enormous amount of energy required by Bitcoin mining, the researchers believe that “Bitcoin mining will encourage and generate more electricity from renewable coal-free sources.”

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“The addition of Bitcoin mining to the toolboxes of powerful developers should increase the overall addressable market for renewable and intermittent energy sources.”

Related: Less likely? Putin says crypto mining has advantages in Russia

Both ETH and BTC had a rough past seven days falling 22.2% and 13% respectively according to CoinGecko.