A new report by ARK Invest foresees the potential of Ethereum’s market cap to hit $20 trillion. Moreover, their report suggests that Bitcoin’s price could surpass $1 million by 2030.
The report by Cathy Woods’ ARK Invest predicts that Ethereum (ETH) will reach or even surpass a $20 trillion market capitalization over the next 10 years. This will result in an average price of $170k-180k per ETH.
Furthermore, the report also anticipated great things for Bitcoin. It states that Bitcoin might experience huge growth as more countries embrace it as legal money. In addition, it is expected that one Bitcoin might be worth more than $1 million by 2030.
Meanwhile, a total of $12.43 billion AUM is held by ARK Invest. For public information, ARK is an American asset management firm that focuses on technology. Moreover, their headquarters are in the United States.
#BigIdeas2022 Report is here!
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
— ARK Invest (@ARKInvest) January 26, 2022
Diving Into Details of ARK’s Report
The report of ARK Invest, Big Ideas 2022, focuses on Ethereum’s development speed regarding performance, productibility, and adaptability. Decentralized financing (DeFi) is the key player that has driven most of the recent development of the Ethereum network.
Additionally, ARK states that DeFi is a promising future as it provides more interaction, transparency, and financial services. As a result, it will lower intermediary costs and counterparty risk.
Following more on the ARK report, decentralized applications (DApps) on Ethereum take over conventional financial operations at the margin. With Ethereum-based smart contracts, various financial services are possible and much easier accessible. These financial services are lending, trading, asset management, insurance, and derivatives.
Likewise, DeFi is much more efficient. Regarding revenue per employee, ARK projected that DeFi outpaced conventional finance by $88 million to $8 million in the prior year.
Diving into the BTC price, eight of Bitcoin’s use cases were given an approx. value and the aggregate of these values were utilized to determine its price. As a result, the results show a market valuation of $28.5 trillion for Bitcoin (BTC) by 2030, giving Bitcoin a price of $1.36 million per BTC.
According to the firm’s prediction, by 2030, Bitcoin is likely to account for:
- 50% of global remittances at 1.5x velocity
- 10 % of emerging market currencies
- 25% of US bank settlement volumes
- 1% of nation-state treasuries worldwide
- 5% of global high net worth individual (HNWI) wealth
- 2.55% of the institutional asset base
- 5% of cash from S&P 500 companies
- 50% of gold’s total market capitalization
Furthermore, the company states that Bitcoin mining may transform energy generation. Although Bitcoin mining uses a large amount of energy, experts predict that Bitcoin mining will incentivize renewable carbon-free sources.