Ethereum Soars 46% Post-Trump Victory; Analysts Predict $22,000 Token Price by 2030
December 2, 2024Following Donald Trump's recent election victory, the total cryptocurrency market cap surged over 45%, benefiting Ethereum, which gained 46% since the election.
Analysts predict that Ethereum could generate up to $66 billion in annual cash flow by 2030, potentially driving ETH prices to $22,000 per token.
Bernstein analysts highlight the potential approval of staking yields in Ethereum exchange-traded funds (ETFs) under a Trump-led, crypto-friendly SEC, which could significantly boost Ethereum's appeal.
Recent inflows into Ethereum ETFs have outperformed Bitcoin ETFs, indicating a revival of interest in these products.
Concerns remain about Ethereum's reliance on Layer 2 solutions, which complicate user experience and may hinder fee growth and user retention.
Ethereum's strong position in the crypto market is bolstered by its transition to a proof-of-stake consensus mechanism, which allows for staking rewards.
Since the U.S. election, Ethereum ETFs have seen over $1.1 billion in net inflows, reaching approximately $11 billion in total assets under management.
Staking involves locking Ether (ETH) as collateral with a validator, allowing stakers to earn payouts from network fees, but carries the risk of losing their collateral if the validator misbehaves.
Ethereum's transition to a proof-of-stake consensus algorithm in September 2023 has stabilized its total supply around 120 million ETH, with 28% locked in staking contracts.
With nearly 60% of the total ETH supply remaining unmoved over the past year, analysts believe this could create favorable demand-supply dynamics for Ethereum's price.
Ethereum's blockchain activity is surging, with 63% of total value locked across all blockchains, demonstrating institutional confidence despite increased retail interest in other platforms.
Hong Kong regulators are considering the approval of staking features for Ethereum ETFs, which could pressure U.S. regulators to act swiftly to maintain market dominance.
Summary based on 7 sources
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Sources
Cointelegraph • Dec 2, 2024
Staking may come soon for US Ether ETFs: BernsteinNewsBTC • Dec 3, 2024
Ethereum Risk-Reward Ratio Is Now Attractive, Brokerage Firm ExplainsBenzinga • Dec 2, 2024
Ethereum ETF With Integrated Staking To Be Approved In The Future: Bernstein