Matthew Sigel, head of digital asset research at VanEck, said that if the relevant dynamics of Ethereum remain uneven, then Ethereum's adoption of the Layer 2 network could cost Ethereum trillions of dollars in potential market value over the next few years. Writing on the X platform on Thursday, the analyst said Ethereum's "changing fundamentals point to the need to update the model". If "current reality" is reflected, Ethereum's price forecast would plunge 67 per cent to $7,300, rather than climb to $22,000 by 2030, Sigel wrote. VanEck's model takes into account the expected increase in the total value of Ethereum locked up, reflecting the value of assets used in DeFi applications. The model also takes into account the amount of Ethereum consumed by the network - Ethereum burned, or Ethereum withdrawn from circulation due to transaction fees.