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The crypto market has never lacked ambition, but a new study has reached an unprecedented milestone: Ethereum could reach $706,000. This prediction, from a 38-page report titled The Bull Case for ETH, is based on a series of economic, technical, and structural analyses that redefine Ether’s place in the global ecosystem. For the authors, Ethereum is no longer simply a programmable blockchain but the energetic and monetary foundation of the future global financial system.
In Brief
- A study predicts Ethereum at $706,000, with a potential market cap of $85 trillion.
- ETH is presented as a productive reserve asset, combining yield, security, and economic utility.
- Its current price is considered largely undervalued compared to its central role in tokenized finance.
Ethereum: from simple crypto to pillar of the global financial system
From the first lines, the study announces a disruption: the financial system is approaching a total overhaul. Ethereum takes the role of the central engine. Its decentralized architecture has operated flawlessly since its creation. No interruptions. A community of developers active, resilient, always engaged. ETH stands out as the only crypto fulfilling several vital functions simultaneously.
The key argument rests on a potential diluted market capitalization of $85 trillion, equivalent to a unit valuation of $706,000 per ETH. This figure is not arbitrary. The authors base it on a comparison with the most solid real-world value reservoirs: oil, gold, sovereign bonds, and the global money supply.
The average of these benchmark assets gives this staggering potential, but it represents an ultimate “equilibrium state” rather than a short-term target.
Much more than a simple speculative asset, Ethereum becomes a productive commodity. Staking generates yield. The asset also serves as collateral in DeFi ecosystems. Around 32.6% of the supply is used as collateral. Nearly 3.5% migrates to other blockchains. Its systemic role is strengthening.
Four pillars to support a six-figure ETH
To reach such a valuation level, the report identifies four major growth drivers. The first: massive tokenization of real assets. Real estate, bonds, commodities… all converge towards blockchain, and Ethereum is today the preferred infrastructure layer for this type of migration.
Secondly, the imminent arrival of ETFs (exchange-traded funds) incorporating ETH staking could create an institutional demand shock. Indeed, the native yield generated by staking – compared to the interest of a gold loan or the income from an oil lease – is a significant asset, especially since it is natively programmable and automatically capitalized.
Thirdly, the race for strategic storage of crypto ETH has already begun. Some funds, companies, and states accumulate Ether in a strategic reserve logic, with a current pool exceeding $2 billion. Finally, the integration of this crypto into automated treasury management could create a continuous demand loop, fueled by its neutrality, censorship resilience, and stable yield.
A controversial valuation, but asymmetric potential
The current price of ETH, around $2,564, is considered ridiculously undervalued given its fundamentals. For the authors, this is not a structural weakness but a temporary market myopia, poorly equipped to understand such a hybrid asset.
Unlike Bitcoin, whose value largely rests on its scarcity and popularity as digital gold, Ethereum combines several economic dimensions.
Traditional models, notably discounted cash flow, do not apply well here. Ethereum is neither a tech company nor a classic commodity. It is a new asset class, midway between gold, oil, sovereign bonds, and a programmable currency.
The authors do not deny the risks: Ethereum’s complexity, frequent updates, and exposure to rapid innovations can deter traditional investors. But they insist: the current undervaluation of ETH crypto represents an exceptional asymmetric opportunity, somewhat like the solo miner who won $350,000. It is a rare chance in a world where real returns are eroding.
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Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
