To The Moon

I believe Ethereum could realistically hit $700,000 per ETH in the long term. Yes, $700,000. It sounds ambitious, but let me break down why this isn’t just a wild guess—it’s grounded in market dynamics, adoption trends, and expert insights.

Prominent figures like Cathie Wood have forecasted Ethereum at $180,000, and Tom Lee has predicted $444,000. But Wall Street veteran Vivek Rahman, co-founder and CEO of Etherealize, takes it further with a long-term target of $700,000. Having spent over a decade at firms like Morgan Stanley, UBS, and Deutsche Bank, Rahman’s not just another crypto enthusiast—he’s a finance insider who sees Ethereum as the future of global infrastructure.In my view, Ethereum’s path to $700,000 hinges on its transformation into the backbone of both financial and non-financial systems worldwide. Rahman’s Etherealize, backed by the Ethereum Foundation and Vitalik Buterin, bridges traditional finance and Ethereum, onboarding major institutions. His prediction isn’t hype—it’s built on a deep understanding of market forces and Ethereum’s unique mechanics.Why I Think $700,000 Is PossibleHere’s my breakdown of the key drivers behind Ethereum’s potential:Ethereum ETFs: Unlocking Institutional Demand

Spot Ethereum ETFs are a game-changer, providing a regulated pathway for pension funds, insurers, and corporate treasuries to invest in ETH without navigating crypto wallets. These ETFs mirror the success of Bitcoin ETFs, which absorbed billions in inflows. Unlike Bitcoin, Ethereum offers a native yield through staking, making it a compelling asset for institutions seeking both exposure and income. I expect ETF inflows to surge, driving demand higher.

Supply Shock Dynamics

Ethereum’s supply is tightening dramatically. Since the 2022 merge, ETH issuance has plummeted, and high network activity burns more ETH in transaction fees than is issued on some days. Over 30% of ETH (roughly 35 million coins) is staked, with additional supply locked in DeFi, smart contracts, and corporate treasuries. Exchange balances are at multi-year lows, meaning there’s little liquid ETH to meet rising demand. Basic economics suggests this supply-demand imbalance will push prices upward.

Ethereum Treasury Companies

Major players are adopting Ethereum as a treasury asset, following the playbook that drove Bitcoin past $100,000. Tom Lee’s BitMine is acquiring billions in ETH, aiming to hold over 5% of the total supply. Ethereum co-founder Joe Lubin’s SharpLink and investors like Cathie Wood, Stanley Druckenmiller, and Bill Miller are also backing this trend. These long-term buyers aren’t flipping ETH on dips—they’re locking it up for years, further constricting supply.

Real-World Adoption and Network Effects

Ethereum is becoming the settlement layer for real-world use cases. Stablecoins, used for payroll and cross-border payments, predominantly run on Ethereum. Major banks are tokenizing assets like bonds and treasuries on-chain, generating network fees that burn ETH, reducing supply further. As adoption grows—spurred by clearer regulations and mainstream use—these transactions create a flywheel: more activity burns more ETH, tightening supply and driving prices higher.

My Two-Stage Price OutlookI see Ethereum’s price trajectory in two phases:Medium-Term ($80,000 ETH): This is Rahman’s near-term target, driven by ETF inflows, treasury accumulation, staking, and fee burns. As Ethereum becomes a core institutional asset, $80,000 reflects a $10 trillion market cap—plausible for a global infrastructure asset. The current supply shock and institutional onboarding make this a realistic waypoint.

Long-Term ($700,000 ETH): If Ethereum captures even a fraction of the hundreds of trillions in global assets (stocks, bonds, real estate), it could settle tens of trillions on-chain. With supply potentially dropping below 90 million coins due to staking and burns, a $60-80 trillion network valuation implies $700,000 per ETH. Ethereum’s dual role as a monetary asset (needed to use the network) and a productive asset (via staking yield) supports this sharp repricing.

Risks to ConsiderI acknowledge risks: Ethereum must scale to handle growing demand, compete with other blockchains, navigate regulatory shifts, and weather crypto’s volatile cycles. However, its roadmap prioritizes scalability and security, regulations are trending toward clarity, and the investor base is shifting to long-term institutions like ETFs and treasuries, reducing volatility risks.Why I’m BullishIn my analysis, $80,000 ETH is a matter of market math—surging demand meeting shrinking supply. The $700,000 target reflects Ethereum’s potential as the settlement layer for the digital economy, akin to the internet’s transformation of commerce. Watch for ETF inflows, rising staked ETH, low exchange balances, and real-world adoption by banks and governments as key signals.

$2X ETHER ETF(ETHU)$ 

$Grayscale Ethereum Mini Trust ETF(ETH)$

$BitMine Immersion Technologies Inc.(BMNR)$

$SharpLink Gaming(SBET)$

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