Standard Chartered Bank Predicts 500% Rise for Ethereum by 2026
According to researchers at Standard Chartered Bank, the price of Ether (ETH), the second-largest cryptocurrency, could increase by 500% by 2026. This follows a similar optimistic forecast for Bitcoin (BTC), which the bank believes could reach $120,000 before 2025.
Reasons for Ethereum’s Potential Surge
A research report by the bank highlights Ethereum’s dominance in the smart contract platforms and upcoming technical upgrades as key factors that could drive the value of its native gas token. Geoffrey Kendrick, the head of forex and crypto research at Standard Chartered Bank, stated that these factors could push ETH to $8,000 by the end of 2026.
Kendrick further suggests that reaching $8,000 would only be an initial step towards Ethereum’s “long-term structural valuation” of $26,000 to $35,000. The bank established this price range back in September 2021.
The Importance of Upcoming Upgrades
Ethereum has already undergone a significant upgrade called “The Merge,” transitioning the network to a proof-of-stake consensus mechanism. However, this is just the first milestone out of five planned developments. These upgrades aim to enhance data storage, scalability, decentralization, and unlock Ethereum’s full potential.
Kendrick believes that upcoming upgrades like “protodank-sharding” will solidify Ethereum’s dominance in the smart contract space and potentially increase its P/E ratio over the next few years. This upgrade is expected to improve transaction throughput and network performance.
Factors Influencing Ethereum’s Price
In addition to network changes, Standard Chartered Bank suggests that ETH’s price could benefit from the upcoming Bitcoin halving in April. The potential approval of spot ETFs for both Ethereum and Bitcoin in the United States is also seen as a bullish factor.
Kendrick predicts that these factors could push ETH beyond $4,000 by the end of 2024, a 2.5x increase from its current price. In July, the bank also forecasted that Bitcoin could reach $50,000 by the end of 2023 and $120,000 by the end of 2024.
Hot Take: Ethereum’s Potential Growth and Standard Chartered Bank’s Optimistic Forecast
Standard Chartered Bank’s researchers are optimistic about Ethereum’s future growth, predicting a significant increase in its price by 2026. With Ethereum’s dominance in smart contract platforms and upcoming technical upgrades, there are strong reasons to believe in its potential.
The bank’s forecast of a 500% rise in ETH’s value aligns with their previous predictions for Bitcoin as well. However, it’s important to note that these forecasts are speculative and subject to market volatility.
Nevertheless, with ongoing developments and increasing adoption of cryptocurrencies, it will be interesting to see how Ethereum performs in the coming years.
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