VanEck Director: Ethereum's "ever-changing fundamentals" and growing support for Layer 2 networks may impact its price

Matthew Sigel, Head of Digital Asset Research at VanEck, suggests that if the dynamics related to Ethereum remain unbalanced, Ethereum's adoption of Layer 2 networks could potentially cost it trillions of dollars in market value over the next few years. This analyst posted on platform X on Thursday stating that "the ever-changing fundamentals of Ethereum indicate a need for model updates." Sigel wrote that if "current reality" is reflected, predictions for Ethereum's price will plummet by 67% to $7300 instead of climbing to $22000 by 2030. VanEck's model takes into account the expected growth in total value locked (TVL) in Ethereum and reflects the asset values used in DeFi applications. The model also considers the amount of Ether consumed - either burned or taken out circulation due to transaction fees.