TL; DR Breakdown
- Ark invest predicts a $20 trillion market cap for Ethereum by 2030
- The company talked about Bitcoin and Ethereum in its report
- Ark Invest makes a case for predictions
Ethereum has continued to perform expectedly well despite the known market turmoil in the last few years. The digital asset has firmly cemented its place as the second in position, only topped by Bitcoin in all ramifications. However, it looks like things will go exceptionally well for the digital asset in the coming days with the latest Ark Invest statement. Ark Invest has predicted that Ethereum is well on course to touch close to $20 trillion in market cap by 2030.
Ark Invest releases Big Ideas 2022 report
Going by the Cathy Woods-led investment statement, this means that the digital asset would sell for nothing less than $180,000 per token. Also, the predictions did not stop at Ethereum as it also imagines more incredible things for the top token, Bitcoin. According to Ark Invest, Bitcoin would sell for $1 million per token in the same time frame. The company, located in the United States of America, has about $12 billion in assets under its management.
The prediction of the Ark Invest team was housed in a recently released document by the entity. Going by the said document, Big Ideas 2022, the company backed its Ethereum prediction with the significant new use cases in the network. It also highlighted that the decentralized finance sector has been pivotal in the resurgence of the Ethereum network. It notes that the sector provides users with various advantages that they are now taking more seriously.
The company backs up its predictions
Ark Invest also mentioned that smart contracts are now everywhere, and it is threatening the existence of traditional finance systems. The report says that traders now leverage smart contracts to get basic features such as banking, insurance, lending, borrowing, etc. It also touched the efficiency rate of DeFi compared to that of traditional finance in a $88 million to $8 million revenue per employee.
Bitcoin could also strike gold in the same time frame as its market cap is predicted to stay around 28.5 trillion. This means that one token would sell for $1.36 million by 2030. In Bitcoin’s case, the company mentioned using the various use cases tied to the token to ascertain its prediction. In the next 20 years, Ark Invest predicts that Bitcoin will be leveraged to carry out 50% of the global remittances and other major use cases.
The firm also believes that Bitcoin mining could shape the future in terms of using renewable sources. However, details show that Bitcoin and Ethereum have declined in the last few days. While Bitcoin sells at $35,987 with a 4% loss, Ethereum sells at $2,391 with a loss of 3%.