Standard Chartered, a global bank, is forecasting that Ether, the second-largest cryptocurrency, could experience a value increase of more than five-fold by the end of 2026.
They anticipate that Ether may reach $8,000 within the next two years due to its increased utilization in blockchain-based smart contracts, gaming, and the tokenization of conventional assets, as stated by Geoff Kendrick, Head of FX Research, West, at Standard Chartered.
As of Wednesday, Ether was trading at approximately $1,575.
Evaluating the value of cryptocurrencies is challenging because tokens like Ether or Bitcoin, which are not backed by traditional assets, lack the benchmarks used for pricing stocks, bonds, or currencies. The prices of crypto tokens are primarily influenced by investor sentiment.
Geoff Kendrick, who leads the bank’s digital assets research, expressed that they view the $8,000 level as an intermediate milestone toward their long-term “structural” valuation estimate, which falls within the range of $26,000 to $35,000.
“The provided valuation considers potential use cases and revenue sources that may not have materialized yet, although the practical applications in gaming and asset tokenization are expected to contribute to their development.”
Kendrick stated to Reuters that the structural valuation estimate is a long-term projection, looking ahead to approximately 2040.
While Ether has experienced a 30% increase in value this year, it remains nearly 70% below its record high of roughly $4,869, reached in November 2021.
StanChart previously stated in July that the leading cryptocurrency Bitcoin could reach $50,000 this year and $120,000 by the close of 2024. At that time, Bitcoin was trading at approximately $27,275.
This article was reported by Tom Wilson and Elizabeth Howcroft and edited by Louise Heavens.
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