ETH ecosystem users have increased 9x since 2020, with VanEck tipping $22,000 by 2030.
The number of daily active users in the Ethereum ecosystem is nearly nine times higher than just four years ago. Analysts say rising demand will push ETH to new heights.
According to data collected by cryptocurrency ETF issuer Bitwise, in the first quarter of 2020, Ethereum and its scaling solutions Arbitrum and Polygon averaged over 250,000 daily active users, with the largest share coming from the Ethereum layer 1 mainnet. .
As of Q1 2024, this number of daily users has grown nearly nine times to approximately 2.25 million since launch, also including Layer 2 networks Optimism, Base, and zkSync.
As a result of pushing transactions to L2, Ethereum now has a much smaller portion of daily active users.
As of June 4, the Ethereum mainnet had 378,000 active users, Polygon had 1.3 million active users, and the remaining four L2s had a total of about 1.5 million active users.
Optimism was launched in late 2021, and the zkSync mainnet and Base were launched for public access in 2023.
Ethereum’s user numbers don’t look great, but it’s part of Ethereum co-founder Vitalik Buterin’s roadmap focused on using L2 as a primary means of scaling the blockchain.
He recently argued that L2 is similar to the sharding concept of existing Eth 2 plans and that this layer could help foster the growth of various “subcultures” within the Ethereum ecosystem.
VanEck drives the growth of the Ethereum network
Meanwhile, VanEck, a cryptocurrency ETF issuer, raised its Ethereum price target, predicting the cryptocurrency will reach $22,000 by 2030.
In a blog published June 5 by Matthew Sigel, head of digital asset research at VanEck, and two colleagues, analysts raised their 2030 expectations for Ether from $11,800 last year, noting that revenue per user will exceed and grow beyond most Web2 businesses. I did. It is gaining popularity not only among Big Tech but also among traditional financial market participants.
“We anticipate that a spot ether ETF will be approved for trading on a U.S. stock exchange. These developments allow financial advisors and institutional investors to hold this unique asset(…) and benefit from the pricing and liquidity advantages that characterize ETFs,” the analysts said.
“We project the 2030 value of ETH based on our prediction that free cash flow generated on Ethereum and accrued by ETH tokens will reach $66 billion,” the analysts added.
Related: The Linea blockchain outage highlights the slow decentralization of Ethereum L2.
Bankless co-founder Ryan Sean Adams said that despite low user numbers, the Ethereum blockchain still generates three times more fees than the top layer 2 networks and Solana combined, calling it a “modern miracle.”
L2 pays Ethereum fees to settle transactions on the main chain and enjoy the benefits of security.
The current price of Ether is $3,862, up 1.3% in the last 24 hours, according to CoinGecko.
While many expect the launch of a spot Ether ETF to push the price of Ether to all-time highs, some warn that inflows into the new cryptocurrency ETF will be much lower than Bitcoin ETFs.
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