The Winklevoss twins, who co-founded the Gemini digital asset exchange as well as family office Winklevoss Capital Management, have predicted the price of Ethereum could reach $40,000 in the long run, with a price target between $5,000 and $10,000 for the end of this year.
During an interview with SumZero, the Winklevoss twins noted that during the start of the bull run this year, they believed Ethereum was undervalued at $1,400 close to its previous all-time high in 2017, while the price of bitcoin was trading at three times its previous all-time high.
The price of Ethereum, it’s worth noting, then moved to a new all-time high above $4,300, before its price crashed to $2,000 amid a wider crypto market meltdown. At press time, CryptoCompare data shows Ethereum is trading close to $2,700.
The Winklevoss twins agreed with the interviewer that the price of ETH being between $5,000 and $10,000 was a reasonable range toward the end of the year, but noted they see it grow much further than that in the long run, and could even increase by 10x, accompanying their BTC price predictions.
It’s worth noting that the interview was in mid-May, when Ethereum was trading above $4,000 and Bitcoin was around $50,000. The twins reaffirmed their previous BTC price prediction pointing to $500,000. Per their words, however, there are psychological barriers ETH will need ot break to get to their prediction.
During the interview, the Winklevoss twins also discussed Ethereum’s biggest threats. They argued that another project would have to be ten times better for people to change over to it, as ETH has a “huge first mover advantage.” They added:
There’s so much building happening there [on Ethereum] that there’s where you want to go, that’s where the eyeballs are. The thing that has to happen is scalability and throughput: its ability to process many transactions cheaply.
Ethereum 2.0, they added, promises to solve ETH’s scalability problems, but with the current excitement in the market “Ethereum can fall victim to the weight of tis own success” if transaction fees become too high.
This could mean several networks gain adoption. As there are several operating systems out there, other layer-one protocols may take advantage of the opportunity created by Ethereum’s high transaction fees. Projects they cited include Solana (SOL) and Tezos (XTZ).
Owning ETH, they said, investors are buying a share of the projects and protocols built on top of it. It would be similar to buying land that people build on top of, effectively increasing its value.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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