The world of crypto is filled with fascinating possibilities and unexpected growth. In a recent series of tweetAdam Cochran, a partner at CEHV, sparked a wave of Ethereum discussion by presenting a compelling case for Ethereum’s token, ETH, to potentially rise to $457,081.
Reveal the analysis
Cochran addressed skeptics questioning the viability of ETH rising 20x, compared to the market caps of tech giants like Apple and Amazon. He emphasized that Ethereum should not be seen as a traditional company, but rather as a pioneering blockchain-based infrastructure that transcends conventional boundaries.
Cochran’s analysis was inspired by the sheer volume of securities processed through clearinghouses, reaching an astonishing $2.5 trillion last year. Considering the ability to run this process on the Ethereum blockchain with a measly 0.05% gas fee, Cochran envisioned an annual burn of $1.25 trillion worth of ETH, equivalent to 5.7 times the current market cap.
Building on this foundation, he extrapolated a forward-looking multiple that predicted Ethereum’s potential value to approach $35 trillion.
Cochran’s projection gained momentum when he introduced the concept of a compound burn rate. Assuming an annual compound burn rate of 2% or more over a 20-year period, the value per ETH could potentially skyrocket to $457,081.
In addition, Cochran acknowledged that a scenario in which 100% of global securities settlement occurs on Ethereum within two decades is unlikely to be achieved, but that 10% settlement within ten years appears feasible.
Ethereum Value and Market Range
In addition to the securities market, Cochran suggested that Ethereum could capture additional value-based markets, further driving growth. He argued that liquidating 10% of global securities and tapping into other value markets could realistically lead to a 30x-35x increase in value within the next decade, even with a 33% margin of error.
Remarkable, Cochran’s analysis sheds light on Ethereum’s potential to disrupt traditional intermediaries and provide reliable and affordable settlement solutions. With trillions of dollars in annual revenue up for grabs, the prospect of weeding out trusted middlemen is becoming increasingly attractive to various markets around the world.
While Cochran’s projections may seem daring, they highlight the limitless possibilities within the crypto space. Ethereum’s unique position as a blockchain infrastructure opens doors to innovation and disruption, ultimately challenging the status quo of trusted intermediaries.
In the meantime, The price of Ethereum has made no significant movement over the past week, but a slight upward trend, up 0.6%. ETH is up from a low of $1,805 last Friday to $1,815, as of this writing.
Ethereum’s market cap has also seen little gain over the past seven days. ETH’s market cap is up nearly 1% from a low of $217 billion to a high of $218 billion on Friday. Meanwhile, ETH’s daily trading volume has also fallen all week from a high of $7 billion last Monday to $3.6 billion in the past 24 hours.
-Featured image from Shutterstock, chart from TradingView
