Ethereum (ETH) could very well reach $1.5 million per token in the future, and the next bull run could "surprise the entire market," according to Eric Jackson – founder of the EMJ Capital investment fund.
"Our analysis shows that the ETH network is undervalued. Ethereum is quietly becoming the dominant payment system in the crypto industry, with a distinctly deflationary economic structure."
Jackson believes that the likelihood of the U.S. approving Ethereum ETF funds with staking features, along with major financial companies using the Ethereum blockchain, will be a catalyst for a "10x bull run in the next few years."
The U.S. Securities and Exchange Commission (SEC) has approved the launch of spot ETH ETFs in July 2024. Analysts predict that staking feature ETH ETFs could receive the green light before October this year.
The market has yet to fully reflect ETH's potential.
According to Jackson, many people mistakenly believe that the market has "fully reflected" expectations for the ETH ETF, as current products have "not exploded" as anticipated compared to BTC ETFs.
Specifically, data from CoinGlass shows that spot Bitcoin ETFs in the U.S. have currently recorded $6.9 billion in trading volume, while Ethereum ETFs have only reached $1.41 billion.
"The real momentum is still ahead: staking ETFs are expected to be approved before October this year. Once ETH becomes a stakable asset, potentially creating yield within the ETF framework, it will no longer simply be 'digital oil' – it will become a standard yield-generating investment product for institutions," Jackson shared.
He stated that staking ETFs will further highlight ETH's deflationary tokenomics model, as circulating supply is tightened by capital flows from traditional finance and increasing staking demand.
"Trading on Ethereum" could push the price to $1.5 million.
Jackson commented that if major companies continue to use the Ethereum blockchain, then ETH could very well reach $1.5 million.
He cited names like Circle (issuer of the USDC stablecoin), Coinbase (cryptocurrency exchange), Shopify (e-commerce platform), and Robinhood (cryptocurrency trading platform). All of them are using or supporting users in interacting with Ethereum.
Jackson believes that if traders think these companies will continue to grow and a portion of global trade will remain with cryptocurrencies instead of fiat, then they are also placing their trust in ETH.
"If the transition to a trading environment using ETH actually happens (and I believe it will), then ETH will move towards $1.5 million over time."
ETH could become a "100-bagger" thanks to DeFi and Layer-2.
Jackson stated that his and EMJ Capital's "base case" scenario is that ETH will reach $10,000 by the end of the current cycle – typically calculated over a 4-year frame, which ends in March 2026.
A more optimistic scenario targets $15,000, provided that capital inflows into ETH and Layer-2 adoption rates exceed expectations, especially after the staking ETF is approved.
Notably, his forecast does not take into account hypothetical scenarios such as the explosion of DeFi and stablecoins or growth from Layer-2 networks of Robinhood and Coinbase. According to Jackson, if these factors actually occur, Ethereum could become a 100-fold investment – also known as a 100-bagger.
As of now, ETH is trading around $3,048, up 2.5% in the last 24 hours.
