Despite the turbulence in the crypto markets, Cathie Wood’s Ark Invest is bullish on the price of ether in a new report released this week.
According to Ark Invest, the second-largest cryptocurrency will reach or exceed a market capitalization of $20 trillion by 2030. Each coin would cost between $170,000 and $200,000 each. To meet the firm’s target, ether would have to rise by about 7,200 percent from its current price of about $2,480.
As decentralized finance gains traction, the ETF manager believes ethereum will “displace many traditional financial services,” laying the groundwork for ether — ethereum’s native token — to compete as a global currency.
“As financial services move on-chain, decentralized networks are likely to take share from existing financial intermediaries,” the report said. Ark Invest predicts ether will be a primary beneficiary of this shift.
According to the report, the price of a single bitcoin could “exceed $1 million by 2030” as investors focus on the cryptocurrency’s long-term value.
Both ether and bitcoin have high forecasts from Ark Invest. Ether has dropped more than 22% in the last week, and is still well below its November high of $5,000.
Similarly, Bitcoin has lost more than half of its value since hitting an all-time high of $69,000 in November. The recent decline in bitcoin, according to JPMorgan, makes even a long-term target of $150,000 less likely.
After massive gains in 2021, the cryptocurrency market has taken a beating in the new year. The performance of digital assets has mirrored that of technology stocks, which have all been in the red for the majority of this month.
Analysts expect crypto to remain under pressure as the Federal Reserve maintains its hawkish stance for 2022.