Asset management giant VanEck has slashed its long-term price forecast for Ethereum (ETH). Meanwhile, Matthew Siegel, head of digital asset research at VanEck, announced that the firm has reduced its 2030 price target from $22,000 to just over $7,300. This drastic change reflects a staggering 67% drop and has caught the attention of investors and analysts alike.
VanEck Slashes 2030 ETH Price Target
In a recent tweet post, Matthew Siegel revealed that VanEck has drastically cut its 2030 price prediction for Ethereum (ETH) from $22,000 to just over $7,300. This shocking change marks a huge 67% drop.
As per the Coinpedia report, VanEck’s original prediction included optimistic price scenarios for Ethereum, estimating values at $22,000 for a base case, $154,000 for a bull case, and an astonishing $360,000 for a bear case.
Meanwhile, this ambitious forecast has now been re-evaluated in light of Ethereum’s recent performance, which has lagged behind major competitors like Bitcoin and Solana, despite the SEC’s unexpected approval of spot ETH exchange-traded funds (ETFs) earlier this year.
Layer 2 Networks Take Center Stage
One significant factor behind the revised forecast is the performance of Layer 2 (L2) networks. Initially, VanEck assumed a balanced split between Ethereum and L2 solutions concerning Total Value Locked (TVL) and Miner Extractable Value (MEV).
However, recent data suggests that the revenue share has shifted dramatically from a 90:10 split in Ethereum’s favor to a striking 10:90 in favor of L2 networks. This shift indicates that L2 solutions are increasingly dominating, pulling value away from Ethereum.
Siegel highlighted that if this trend continues, Ethereum’s price target could drop by about two-thirds, leading to the new estimated price of $7,333 by 2030.
What’s Next for Bitcoin?
Interestingly, while VanEck adjusts its outlook for Ethereum, it maintains a bullish stance on Bitcoin. Siegel predicts that the outcome of the upcoming U.S. presidential elections could propel Bitcoin to new heights.
He believes that if Donald Trump wins, Bitcoin might reach an all-time high shortly after the elections. Furthermore, VanEck has set a bold 2030 target of $350,000 for Bitcoin, expecting it to capture a significant portion of the global gold market.
