So far in 2024, Bitcoin (CRYPTO:BTC) has attracted a lot of attention from crypto investors, mainly thanks to the buzz surrounding the launch of the new Spot Bitcoin ETF. but don’t sleep Ethereum (Crypto:ETH), which is finally showing signs of a bullish market rally above the $2,000 price level.
For Ethereum’s future price to reach $10,000, its value would need to increase by approximately 5x in a relatively short period of time. But there are several good reasons why this may be more likely than you think. let’s take a closer look.
Ethereum market dominance
Although it may be fashionable to talk about all the upstart cryptos challenging Ethereum – especially solana (Crypto:SOL) – The fact is that Ethereum still dominates almost every major area in the world of blockchain-based smart contracts.
Take decentralized finance (DeFi), for example. According to the leading metric used to calculate DeFi strength (Total Value Locked, or TVL), Ethereum leads the market by a wide margin. Ethereum currently accounts for 56% of all TVL in the blockchain world. By comparison, Solana has a market share of less than 3%.
In the best case scenario, Ethereum will continue this market dominance over the next five years. In doing so, it will position itself at the forefront of every major blockchain trend. Of course, some of these trends may flare up, as we recently saw with non-fungible tokens (NFTs) and metaverse tokens. But some of these trends may actually take off and create huge amounts of value down the road.
Spot ETF approval on the way
There are also several upcoming catalysts that could lead to a continued rise in the price of Ethereum. Chief among these is the potential launch of a spot ETF product for Ethereum.
These new Ethereum ETFs are expected to generate the same kind of excitement in the market as the new Bitcoin ETFs. In fact, soon after the spot Bitcoin ETF began trading, the price of Ethereum was largely based on this sentiment. At the moment, it looks like the spot Ethereum ETF could get SEC approval as early as May. Assuming there are no market headwinds related to the new Bitcoin ETF, approval now looks likely.
The big question is what kind of impact this approval could have on the price of Ethereum. The current sentiment is that institutional investors will choose to allocate at least 1% of their portfolios to crypto. Presumably, the bulk of that money will flow into Bitcoin. But some of that money will also flow into Ethereum, and this could lead to a steady rise in the price of Ethereum over time.
How likely is a $10,000 price prediction?
A price target of $10,000 by the year 2030 may seem strange, but it is actually more conservative than other price targets for Ethereum. If you look at the crypto industry, you can find price predictions of $50,000 and higher for Ethereum. It all really depends on how fast you see Ethereum growing over the next half decade.
Image Source: Getty Images.
For example, in 2022, Cathie Wood of Ark Invest predicted that Ethereum would have a market capitalization of $20 trillion by the year 2030. Given Ethereum’s current circulating coin supply of 120 million, its future value will be approximately $170,000 per coin! Additionally, Wood suggested that Ethereum could outperform Bitcoin in the next crypto market rally and potentially even “flip” Bitcoin in terms of overall market capitalization.
Granted, the $170,000 price prediction was made amid all the buzz and uproar surrounding The Merge, in which Ethereum overhauled its blockchain in preparation for the next wave of growth. But it does give you an idea of how high some investors think Ethereum could climb in the next few years.
what’s next
From my perspective, Ethereum needs to do a few things next to reach that magical $10,000 price point in early 2030. For one, we need to see approval of a spot Ethereum ETF. This will make Ethereum more attractive to both retail and institutional investors. It would also be great to see Ethereum continue to make major upgrades to its blockchain, making it even faster, cheaper, and more efficient to use.
Really the only problem is what to do about all those dangerous Ethereum challengers. They appear to be growing faster than Ethereum and, in some cases, innovating much faster than Ethereum. Cathie Wood has also accepted this.
So Ethereum reaching a price of $10,000 is by no means a slam dunk. Even in the best of all possible worlds, it takes several years of obviously unrealistic price gains to get there. But if the entire crypto industry continues to grow and mature, and if Ethereum maintains its dominant market role along the way, it could happen.
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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Prediction: Ethereum will reach $10,000 in 2030 Originally published by The Motley Fool
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