Fundstrat Strategist Posts $10,500 Ethereum Target for 2021

Ethereum’s potential share in the cloud computing space is creating a strong tailwind for ETH, according to a financial strategist at Fundstrat Global Advisors LLC. 

TradFi Sees Strong Intrinsic Value in ETH

Fundstrat’s David Grider posted a target of $10,500 for Ethereum by year-end. 

Grider’s analysis is based on the miners’ fee revenue. The mounting fees on Ethereum make a strong case for the real-world utility of the blockchain platform. He found that miner’s revenue is growing at 1,099% every five years, compounded annually.

He noted Ethereum miners generated approximately $600 million in fees last year. The strategist went on to compare the number two network with the cloud computing industry.

The asset management firm placed its bullish target based on the BVP NASDAQ cloud index (EMCLOUD), which tracks the largest public companies providing cloud services. EMCLOUD is trading at $2,602 at press time. The total market capitalization of companies comparing the index is in the trillions of dollars.

Ethereum’s total earning from the cloud computing space alone is $108 million within the first month of the year. The annualized target for 2021 from cloud services is $3.9 billion. Grider wrote: 

“On a growth adjusted basis, we calculate Ethereum is ⅛ the price of the BVP Cloud Index. Based on our analysis, we are issuing a $10,500 target on Ethereum.”

According to a market research report, the value of the cloud computing market stood at $199.01 billion in 2019. Beyond Fundstrat, many have turned bullish on Ethereum.

Luis Cuende, a co-founder of Aragon, shared with Crypto Briefing:  

“When thinking about what the Web3.0 vision provides, institutional investors will recognise that although sovereign digital currency (BTC) is central, the importance of a programmable economy (ETH) should not be underestimated.”

Cuende predicted ETH at $3,000 in the current bull run. 

The price of the second largest crypto has, nonetheless, taken a hit since hitting the all-time highs yesterday; ETH is trading at $1,280, down 14.1% from the peak.

Disclosure: The author held Ethereum at the time of publication.