A new Ark Invest report by Cathy Woods predicts so Ether (ETH) will reach or even exceed a market cap of USD 20 trillion in the next 10 years, which would equate to a price of between USD 170,000 and USD 180,000 per ETH.
The report also predicted big things for Bitcoin (BTC) and said so it will “likely escalate as nation states adopt it as legal tender…the price of a bitcoin could top $1 million by 2030”.
Ark Invest is an American technology-focused asset management company headquartered in the United States, with $12.43 billion in assets under management.
#BigIdeas2022 report is here!
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to???? ARK Invest (@ARKInvest) January 26, 2022
The #BigIdeas2022 report is here! To educate investors about the impact of cutting-edge technology, we began publishing Big Ideas in 2017. This annual research report aims to highlight our most provocative research of the year. Download it!
Ark Invest’s Big Ideas 2022 report prediction is based on how quickly the Ethereum network has grown in utility and efficiency. Much of the growth over the past two years has come from decentralized finance (DeFi). Describing the appeal of DeFi, Ark stated:
“Decentralized finance promises greater interoperability, transparency and financial services while minimizing brokerage commissions and counterparty risk.”
According to Ark, smart contracts and decentralized applications on Ethereum “occupy traditional finance functions on the frontier. “The report highlighted that banking and lending, exchanges, brokerage, wealth management, insurance and derivatives are all found on Ethereum-based smart contracts.
Also, DeFi is much more efficient. Ark appreciated that DeFi surpassed traditional finance in revenue per employee from $88 million to $8 million over the past 12 months.
In terms of bitcoin, the report predicts $1.36 million per BTC with a market cap of $28.5 trillion by 2030.. Ark researchers assigned an estimated future value to eight Bitcoin use cases and used the sum of all to arrive at their conclusion about the price of BTC.
By 2030, the company expects Bitcoin to account for 50% of global remittances at a 1.5x rate, 10% of the currency of emerging markets, 25% of the liquidation volume of US banks, 1% of the treasuries of the world’s nation states, 5% of the world’s wealth of high net worth individuals, 2.55% of the institutional wealth base, 5% of the cash of SP 500 companies and 50% of the total market capitalization of gold.
Ark also argued that bitcoin mining “could revolutionize energy production.”. While global concern has been expressed about the massive amount of energy required for bitcoin mining, Researchers Believe “Bitcoin Mining Will Mine and Generate More Electricity from Zero-Carbon Renewable Sources”.
“The addition of bitcoin mining to energy developers’ toolboxes should expand the overall addressable market for renewable and intermittent energy sources.”
Both ETH and BTC had a tough decline of 22.2% and 13%, respectively, over the past seven days, according to CoinGecko.