ARK Invest forecasts Ethereum price to rise to $166,000 by 2032

Despite the fact that ether-backed exchange-traded funds have not attracted as much attention as the previously approved bitcoin ETFs, some investors continue to see Ethereum's significant growth potential. For instance, Cathie Wood of ARK Invest has a positive outlook for the cryptocurrency. According to her calculations, the asset's price could reach $166,000 by 2032.

Given this scenario, the price of ether would increase by nearly 6,220%, while its market capitalization could exceed $20 trillion. For comparison, bitcoin's current market capitalization is approximately $2 trillion.

Yahoo Finance analysts question whether Wood's optimistic assessment should be trusted, or better to stick to more realistic scenarios. Ethereum is traditionally considered less power-efficient than many other cryptocurrencies, although a recent large-scale platform upgrade has significantly improved its performance.

To maintain its popularity among users, the Ethereum network must provide them with fast transaction times and keep fees low. This task is becoming increasingly difficult with growing competition from Solana and Cardano, according to the website.