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June 6, 2024
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June 6, 2024ETH ecosystem users 9X since 2020 as VanEck tips $22K by 2030
The Ethereum ecosystem has witnessed a remarkable surge in daily active users, nearly ninefold since Q1 2020, driven by increasing demand for its services. Analysts anticipate this trend to drive Ether to new price highs.
Data from Bitwise reveals a significant increase in daily active users on Ethereum and its scaling solutions, reaching approximately 2.25 million in Q1 2024, compared to around 250,000 in Q1 2020. This growth is attributed to the integration of layer-2 networks like Optimism, zkSync, and Base, alongside Ethereum’s mainnet.
Evolving Landscape of Ethereum Usage
While Ethereum’s mainnet recorded 378,000 active users on June 4, the layer-2 networks, particularly Polygon and other L2s, amassed around 1.5 million active users. This shift signifies Ethereum’s transition towards layer-2 scalability solutions, aligning with co-founder Vitalik Buterin’s vision.
VanEck, a leading crypto ETF issuer, raised its price target for Ethereum, anticipating the cryptocurrency to reach $22,000 by 2030. This revised forecast highlights Ethereum’s growing revenue per user and its appeal to traditional financial market participants.
VanEck analysts project spot Ether ETFs to soon trade on U.S. stock exchanges, providing financial advisors and institutional investors with exposure to Ether’s unique asset class. They expect Ether’s valuation in 2030 to be driven by an estimated $66 billion in free cash flows generated by Ethereum.
Ethereum’s Revenue Dominance and Price Performance
Despite lower user numbers, Ethereum continues to outperform other layer-2 networks and Solana in fee generation, showcasing its robust revenue model. The integration of layer-2 solutions contributes to Ethereum’s security and sustainability.
As of now, Ether is priced at $3,862, with a 1.3% increase over the last 24 hours. Many foresee the launch of spot Ether ETFs to propel Ether’s price to new all-time highs, although some caution that inflows into these ETFs may not match those of Bitcoin ETFs.
