TechFlow news, Matthew Sigel, VanEck's Head of Digital Asset Research, said on Thursday that Ethereum's "changing fundamentals" and the growing popularity of Layer 2 (L2) networks could significantly impact ETH's future price.
Sigel stated that if current trends continue, Ethereum’s price forecast for 2030 could plummet 67% from the original $22,000 to $7,300. This projection is based on the following observations:
1. Data over the past four months shows L2 networks are capturing more value away from Ethereum than expected.
2. The actual distribution of transaction revenue between Ethereum and L2s stands at 10:90, far below the previously assumed 90:10 split.
3. Since mid-April this year, Ethereum's supply has increased by 318,000 ETH, shifting it into an inflationary state.
Notably, Ethereum has recently underperformed compared to other major cryptocurrencies. Over the past year, ETH has risen 65% to $2,591, while Bitcoin has surged 135% to $67,000, and Solana has skyrocketed 517% to $148.
