#EthereumFuture

According to Matthew Sigel (Head of Digital Assets Research) and Patrick Bush (Senior Investment Analyst, Digital Assets):

In our Base Case, we assume that Ethereum will achieve $51B in annual revenue in the year ending 4/30/2030. We deduct

a validator fee from this total, 1%, and a global tax rate of 15%, and we arrive at cash flows of $42.90B to Ethereum.

Assuming an FCF multiple of 33x, 120.7M token, we come to a Base Case 2030 Price Target of $11,848 per token.

To determine a valuation in today’s dollars, we discount Ethereum at 12% despite finding, through CAPM, an 8.74%. We use

this elevated figure to reflect increased uncertainty around the future of Ethereum. As a result, we find today’s discounted

price to be $5,359.71 in our Base Case.

We base these estimates on the thesis that Ethereum becomes the dominant open-source global settlement network that

hosts substantial portions of the commercial activity of business sectors with the highest potential to gain from moving

their business functions to public blockchains. In a portfolio of similar smart contract platforms, we assume to own

a collection of call options, with the dominant platform likely to take a majority market share. $ETH