Ethereum’s Price Trajectory Seen Exceeding Apple and Microsoft Combined Valuation

A new paper published June 12 by Ethereum boosters predicts the cryptocurrency’s price will surpass that of Apple and Microsoft combined, reaching $80,000 by the long-term end.

The analysis, titled “The Bull Case for ETH,” argues that global proven oil reserves currently valued at about $85 trillion offer a fitting comparison for the digital asset’s projected growth potential, given Ethereum’s role as foundational software for the new economy.

The authors contend not only that Ethereum can serve as a store of value akin to Bitcoin but will also power the next generation of financial and social applications. They explicitly liken Ethereum to “digital oil powering the digital economy,” contrasting Bitcoin’s image as “digital gold.”

At $80,000, the total market value of all Ether (ETHEREUM) in circulation (constantly increasing) would reach approximately $10 trillion, significantly exceeding the current combined market cap of Apple and Microsoft.

Intriguingly, the report authors did not elaborate on the specific justifications for their bullish forecast, which some analysts find noteworthy in contexts of prevailing skepticism. This contrasts sharply with predictions from institutions like Standard Chartered, which recently revised its short-term outlook but remains fundamentally optimistic.

In March, Standard Chartered lowered its 2024 Ethereum price target from $10,000 to $4,000 while still forecasting upside. The contrast between the new ETH paper’s optimistic long-term thesis and these somewhat tempered (but still positive) short-to-intermediate-term forecasts highlights the notable shift in market sentiment over the past year, alongside the ongoing bearishness of some analysts.

The paper attempts to position Ethereum more favorably among investors who struggle to grasp its core value proposition. Unlike Bitcoin, whose case hinges primarily on fixed supply and scarcity mimicking gold, Ethereum’s value is deeply intertwined with the future of blockchain-based applications and digital transactions.

Co-author Ran Raman indicated the paper’s goal is practical: to accelerate understanding and adoption by the very institutions (including major Wall Street houses) previously indifferent or skeptical.
“Global proven oil reserves have a combined market valuation of approximately $85 trillion,” the authors state, adding that while other crypto assets exist, Ethereum stands as “the destination for those interested in the future of the internet and finance.”

Sources: CoinDesk, Standard Chartered (March 2024)