Ark Invest’s new report expects Ether’s market capitalization will reach $20 trillion and BTC’s value will have risen above $1 million by year 2030 based on Bitcoins use cases and how Ether captures the market share from TradFi.

Cathy Woods’ Ark Invest released a report indicating Ether will have met or even far exceed a $20-trillion market cap sometime in the next decade, which would be a value of around $170,000 to $180,000 each ETH.

The report also expects great things for Bitcoin (BTC), predicting it is “likely to scale as nations adopt (it) as a legal tender… the value of one bitcoin might exceed $1 million by 2030.”

Ark Invest is a technology-focused American asset management company based in the U.S. with $12.43 billion in assets under its management.

The prediction in Ark Invest’s recent report “Big Ideas of 2022” is predicated on how fast the ETH network has grown in efficiency and utility. Much of its growth over the last two years has come from DeFi. Ark explained the appeal of DeFi, saying:

“Decentralized Finance promises more transparency, interoperability and financial services while at the same time minimizing intermediary counterparty risk and fees.”

According to Ark, decentralized applications and smart contracts on ETH are “usurping traditional financial functions at the margin.” The report has highlighted that lending and banking, exchanges, asset management, brokerages, insurance and derivatives could all be found on ETH-based smart contracts.

What’s more, DeFi is much more efficient, too. Ark has estimated that DeFi has performed better than traditional finance over the past year in terms of its revenue per employee from around $88 million to $8 million.

In terms of BTC, the report expects $1.36 million per Bitcoin with a market capitalization of $28.5 trillion by year 2030. Ark researchers have assigned an estimated future price to eight of BTC’s use cases and used the sum of every one of them to come up with the expected price of BTC.

Ark has also argued that BTC mining “might revolutionize energy production.” While concerns around the world have gone up about the huge amount of energy that BTC mining requires, the researchers think that “BTC mining will generate and encourage more electricity from renewable carbon-free sources.”

“The addition of BTC mining into power developers’ toolboxes should raise the overall addressable market for intermittent and renewable power sources.”

Author: Blake Ambrose

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