With the recent halving and spot exchange-traded funds (ETFs) driving demand, Bitcoin has been in the spotlight for much of 2024. However, according to Cathie Wood of Ark Invest, Ethereum (ETH) could catch up with Bitcoin and provide investors with huge profits in the coming years.
At an investor conference hosted by Ark Invest, Wood spoke about Ethereum, noting that the project could reach a market cap of $20 trillion by 2032. ETH currently has a reserve of ‘around 120 million tokens. So, a market cap of $20 trillion implies a price per token above $166,000. Additionally, the Ethereum Foundation continues to burn tokensthis figure could therefore be even higher.
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Priced at $166,000, six ETH would be worth around $1 million. Currently, six ETH costs around $20,000.
For reference, the total market capitalization of the S&P 500 is approximately $40 trillion. Additionally, the world’s total underground gold reserves are estimated at around $16 trillion. Even though Ethereum could theoretically reach a market cap of $20 trillion, it probably won’t happen anytime soon, if at all.
However, to explain this massive claim, Wood primarily discussed mainstream adoption. Ethereum is primarily used to interact directly with a multitude of decentralized finance (DeFi) applications. These projects can offer benefits ranging from borrowing and lending to storing medical records. However, in 2024, Challenge is mainly used for small-scale financial platforms. According to Wood, if Ethereum can start accumulating beneficial use cases for users, its adoption could follow, which could theoretically increase the price of the token.
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Additionally, the potential of Ethereum spot ETFs could further propel prices. Spot Bitcoin ETFs, approved in early 2024, have been the most successful ever. They brought tons of new capital into Bitcoin, helping the token reach new highs. Although not guaranteed, the potential approval of spot ETFs could have a similar impact on the price of ETH.
Aside from that, Wood was likely throwing a lot of these to get investors excited about the future of ETH. While there is certainly potential for a bright future, it is unlikely that Wood’s prediction will be accurate.
It is also important to consider that Wood has a vested interest in Ethereum’s performance. His company, Ark Invest, currently has an Ethereum futures ETF (ARKZ) and is in talks with the Securities and Exchange Commission about a spot Ethereum ETF.
Wood would benefit from an increased volume of ETH, especially with regard to the financial products offered by his company.
Despite the apparent conflict of interest, many remain optimistic about ETH in the near future. As crypto adoption grows and the potential for ETH to take advantage of the spot…
