Last Updated on October 11, 2023 by Bitfinsider
According to Standard Chartered Bank, the price of ether (ETH), the native cryptocurrency of the Ethereum blockchain, could increase from its present level of about $1,600 to $8,000 by the end of 2026.
“We think Ethereum’s established dominance in smart contract platforms, along with emerging uses in gaming and tokenization, has the potential to push ETH to the $8,000 level by end-2026 (a 5x multiple from the current price of $1,600),” Geoffrey Kendrick, head of forex and crypto research at Standard Chartered Bank, wrote in a report on Wednesday.
A first step toward the bank’s previously indicated “long-term structural valuation” range of $26,000 to $35,000 is seen at the anticipated $8,000 level for ether, Kendrick said. The real-world use cases of gaming and tokenization should encourage their development, according to Kendrick, even though that long-term valuation implies Ethereum’s future use cases and revenue streams that may not have yet materialized.
According to Kendrick, Ethereum Layer 2 scaling networks will likely expand as a result of impending technical developments like proto-danksharding that will let these platforms charge cheaper transaction costs. This is expected to “help to cement Ethereum’s dominance in the smart contract space, thereby increasing its P/E ratio (if not its earnings) over the next couple of years,” he stated.
According to Kendrick, all digital assets, especially ether, the second-largest cryptocurrency, should benefit from the impending halving of bitcoin around April 2024. “Subsequently, potential regulation and spot ETFs in the U.S. should benefit ETH as much as BTC; we pencil this in for late 2024, after the U.S. election,” he stated.
According to Kendrick, all of these reasons have the potential to raise the price of ether to $4,000 by the end of 2024, which is still less than its previous peak price of $4,866, attained in late 2021.
A wild $100,000 price prediction for bitcoin by the end of 2024 was made by Kendrick in April of this year, when he claimed that “crypto winter is finally over.” About $27,300 is what bitcoin is currently worth.
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