The Ethereum price has fluctuated over the past two weeks, pausing after a recent surge. During this time, it has stayed within the support and resistance levels of $2,400 and $2,700 and is approximately 85% higher than its lowest point this year. This article estimates the ETH price target if its market cap matches that of silver.
Ethereum Price Target if Its Market Cap Matches that of Silver
Bitcoin is frequently compared to digital gold, with some analysts drawing parallels between Ethereum and silver.
Bitcoin’s market cap has grown to over $2.2 trillion over the last 16 years. If this trend continues, it is likely to surpass gold’s $22 trillion within the next decade. It only needs to rise to about $1.046 million, which is lower than Ark Invest’s target of $2.4 million.
Gold and silver have maintained a unique relationship over the years. As such, if Bitcoin matches gold at some point, Ethereum may also rise and match that of silver.
Data shows that Ethereum has a market cap of $303 billion, while silver is valued at $1.88 trillion, making it the eighth-most valuable asset globally. Only gold, Microsoft, NVIDIA, and Apple are bigger.
Therefore, assuming Ethereum has a circulating supply of 120,420,000 ETH, it would need to rise to $15,611 to reach a market cap of over $1.8 trillion.
This view assumes that the price of silver remains at the current $33, which is unlikely. If the price of silver decreases and Ethereum experiences a surge, ETH might surpass silver at a price lower than $15,611.
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Can ETH Price Hit $15,610?
The price of Ethereum needs to rise by 525% for its market cap to reach $1.8 trillion. Such a significant increase is possible in the crypto industry. For example, the price of ETH has already soared by over 3,000% from its lowest level in 2018, indicating that it could rise by 525% if a sufficient catalyst emerges.
Recently, the prices of XRP and XLM surged by nearly 500% in November, while tokens like ETHFI and Maple Finance’s SYRUP have risen by over 300% in recent weeks.
To increase by over 500%, the Ethereum price would require numerous catalysts. First, Bitcoin needs to finally break out and continue soaring towards the $200k level. Ethereum and other altcoins tend to perform well only when Bitcoin is in an uptrend.
Second, Ethereum needs strong ETF inflows, which would signal institutional demand. The SEC’s decision to allow staking in ETFs could potentially catalyze more inflows.
Third, the price of ETH would also need more inflows into its staking pools. While Ethereum has a staking market cap of $84 billion, its staking ratio is 27%, lower than Solana’s 65%, Sui’s 75%, and Cardano’s 60%.
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