A research team of the American investment management firm ARK Invest envisioned a highly optimistic future for bitcoin. According to them, the price of a single coin could surpass $1,000,000, and the asset’s market capitalization might reach $28.5 trillion by 2030.
The Nasdaq-listed company ARK Invest, led by Catherine Wood, has been an advocate of the cryptocurrency industry for a while, especially bitcoin. In July last year, the organization purchased 450,000 additional shares of the Grayscale Bitcoin Trust in two days. As of now, the firm holds more than 6.5 million shares of GBTC.
In turn, Cathie Wood – has displayed a pro-bitcoin stance numerous times as well. At the end of last year, she came up with the bold prediction that the leading digital asset could reach $500,000 in five years.
In its most recent research, ARK Invest envisioned even more significant expansion for bitcoin – $1.36 million per single coin by 2030. The team estimated that this price increase could happen as the market cap of the cryptocurrency taps $28.5 trillion:
“According to our research, Bitcoin’s market capitalization could scale more than 25-fold in the next decade, with each exceeding $1 million in value.”
ARK Invest outlined several achievements, which the primary digital asset registered in the past months. These include surpassing $1 trillion in market capitalization in February 2021, the approval of the first BTC ETF by Canadian regulators, and the SEC’s green light on the Bitcoin Futures ETF in October.
Subsequently, the team pointed out that the crypto asset has received more attention from institutional investors who want to hold it long-term. It also outlined El Salvador’s pioneering move to adopt bitcoin as legal tender inside its borders.
Apart from bitcoin, ARK Invest’s team forecasted a bright future for Ethereum, as well. The research argued that the second-largest blockchain could displace many traditional financial services, while its native token ether could compete as global money. The latter’s market capitalization could even exceed $20 trillion in the next ten years, ARK Invest suggested.
Given today’s total supply of ETH, if such a market cap is reached, then a single coin will be valued at roughly $175,000.
The analysts described Ethereum as “a work in progress” since it is on its way to updating its network to Ethereum 2.0, expected to happen this summer. As a result, the project will shift from a proof-of-work mining method to proof-of-stake and thus become “greener.”
Many believe the protocol will also become more scalable after the transition. Currently, Ethereum can process 15 transactions per second, while Ethereum 2.0 should be able to reach 100,000 TPS.