- Cathie Wood expects Ethereum (ETH) values to pop by 5,000% in 2032.
- The Ark Invest CEO sets her target price for the second-largest cryptocurrency in the world at $166,000 per ETH.
Previously, Ark Invest CEO Cathie Wood boldly forecasted Bitcoin’s (BTC) potential climb to $1.5 million per BTC by 2027. She anchored her projection to the growing institutional adoption of the digital asset via spot Bitcoin exchange-traded funds (ETFs) and the impending supply crunch following the halving due to the anticipated stronger investor demand for BTC.
Should her prophecy come to fruition, it could mean over 2,100% increase in the price of Bitcoin from its present value at $66K. If that’s already mind-blowing, wait until you learn about her projection for Ethereum.
Ethereum to $166K
More astonishing than Wood’s outlook for Bitcoin was her prediction for Ethereum. According to The Motley Fool, the Ark Invest supremo believes Ethereum has the potential to reach $166,000 per ETH by 2032.
Crunching the numbers, it would translate to more than 5,000% gain after eight years from ETH’s current $3,200 valuation. This would also pump its market cap from the prevailing $384.86 billion to $20 trillion by the targeted year.
In comparison, Gold, which reigns supreme among the top tradable assets in the world by market cap, has a total valuation of $15.82 trillion. In the same rankings, Bitcoin sits in the ninth place with the value of its circulating supply going around $1.30 trillion. Ethereum snags the 25th spot in the hierarchy with its abovementioned market capitalization.
ETH’s Edge
The very bullish view of Wood for Ethereum lay in its blockchain’s innate advantages. First off, she highlighted its network’s capability to provide developers with means to create their own tokens, decentralized apps (dApps), and non-fungible tokens (NTFs). Bitcoin’s ecosystem only allows BTC mining, Ordinals, and Runes generation at the moment.
Another leverage Ethereum holds is its shift to a more energy-efficient proof-of-stake (PoS) protocol during the 2022 Merge as opposed to Bitcoin’s proof-of-work (PoW) mining since its inception. The same upgrade is foreseen by developers as a catalyst for Ethereum’s continuous expansion, especially in the Web3 space.
In addition to these, The Motley Fool reminded everyone of Ethereum’s widespread recognition as a legitimate cryptocurrency. Right now, it is one of the cryptos greenlit by the New York State Department of Financial Services. The source said that its status could help the bid of several spot Ethereum ETF applications for regulatory approval in the US.
But then again, it should be recalled that Ethereum is also under the scrutiny of the Securities and Exchange Commission (SEC) as of late for its possible reclassification as a security under US laws. This might crumble all hope for the approval of spot Ether ETFs this year.
Final Thoughts
The scenario painted by Wood certainly offers an enticing long-term play for Ethereum. However, The Motley Fool warned of the CEO’s tendency to make the wrong calls recently. This is further demonstrated by her company’s inability to recover the prices its stock lost in the past couple of years despite the S&P 500’s 76% rally in the last five years.
Ark Invest shares fell from a top of over $137 in 2021 to $42.25 at the start of the trading week on Monday.