According to a new report by Kathy Woods of Ark Invest, Ether (ETH) will reach or even exceed $20 trillion in market capitalization over the next 10 years, which equates to a price between $170,000 and $180,000 per ETH.

The report also predicts significant gains for Bitcoin (BTC), stating that it “is likely to expand as countries accept [it] as legal tender…the price of Bitcoin could exceed $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.

The prediction in the Ark Invest Big Ideas 2022 report is based on how quickly the utility and efficiency of the Ethereum network will grow. Much of the growth over the past two years has come from decentralized finance (DeFi). Ark described the appeal to DeFi by saying:

“Decentralized finance promises greater interoperability, transparency, and financial services while reducing brokerage fees and counterparty risk.”
According to Ark, smart contracts and decentralized applications on Ethereum are depriving traditional financial functions of profit. The report highlights that banking, lending, stock exchange, brokerage, asset management, insurance and derivatives can be found in Ethereum-based smart contracts.

In addition, DeFi is more efficient. Ark estimates that DeFi has overtaken traditional financing over the past 12 months in revenue per employee from $88 million to $8 million.

In the case of Bitcoin, the report estimates $1.36 million per BTC with a market capitalization of $28.5 trillion by 2030. The price of BTC.

By 2030, the company expects Bitcoin to account for 50% of global remittances at a rate of 1.5x, 10% of emerging market currencies, 25% of US bank settlements, 1% of national government bonds worldwide, and 5% of Global individual assets. With a high net worth, 2.55% of the institutional asset base, 5% of cash from S&P 500 companies, and 50% of the total market capitalization of gold.

Ark also stated that bitcoin mining “could revolutionize energy production.” While global concerns have been raised about the massive amount of energy needed to mine bitcoin, researchers believe that “bitcoin mining will catalyze and generate more electricity from renewable and carbon-free sources.”

“Adding bitcoin mining to the electricity developers’ toolkit should increase the overall market available for renewable and intermittent energy.”
Related: Ban less likely? Putin believes crypto mining has advantages in Russia

According to CoinGecko, ETH and BTC have both fallen on hard times over the past seven days, dropping 22.2% and 13%, respectively.

Source: CoinTelegraph