- Ethereum’s price target for 2030 drops to $7,334 as Layer 2 networks claim more transaction revenue, signaling major market shifts.
- With Ethereum’s projected revenue falling to $26,753, tokenholders may see reduced returns at $22,512 by 2030.
- The competitive landscape changes as Ethereum’s market share holds steady at 70%, but L2 networks challenge its revenue growth.
Ethereum’s price forecast has undergone a shift as Layer 2 (L2) networks claim more transaction revenue than expected. Matthew Sigel, a notable financial analyst, highlights this development, revealing a 10:90 split in favor of L2s over Ethereum.
Analysts first expected that 90% of L2 transaction revenue would go to Ethereum which reduces Ethereum’s projected price target for 2030 by two-thirds, casting doubt on the long-term value of the coin.
L2 Networks Impact Ethereum’s Future Valuation
The new Ethereum model highlights important market metrics and suggests that the network’s smart contract dominance will remain strong at 70% through 2030. Besides, Ethereum’s projected revenue has dropped from $79,491 to $26,753, mainly driven by the increasing revenue share of L2 solutions. Consequently, Ethereum tokenholders will experience reduced value, with returns expected at $22,512 in 2030, reflecting market shifts.
Moreover, global crypto tax rates and validator cuts are expected to stay at 15% and 1%, respectively, maintaining a stable framework. The overall free cash flow (FCF) yield sits at 7%, but the real yield has dipped slightly to 6%. These fundamental adjustments reflect the growing competition between Ethereum and L2 networks.
Long-Term Market Metrics Reflect Adjusted Price Target
However, Ethereum’s price forecast has shifted significantly. Its fair discounted value (FDV) now stands at $750,431 under the revised metrics, compared to the original $2.2 million projection. Hence, the adjusted 2030 price target for Ethereum is $7,334, a reduction from the earlier projection of $22,281.
Besides, the supply of Ethereum by 2030 is projected to reach 102.32 units, while today’s price sits at $3,317. These revised numbers indicate that although Ethereum continues to be the leading player, the emergence of L2 solutions may limit its long-term growth.
Though the emergence of Layer 2 networks may cause Ethereum’s growth to be slower than anticipated, the future of the platform is still bright. The shifting revenue dynamics and new price targets highlight a changing landscape for Ethereum, requiring closer attention to future market developments.
The post Layer 2 Networks Shift Ethereum’s 2030 Price Outlook with Major Revenue Impact appeared first on Crypto News Land.
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