The London-based Standard Chartered Bank (StanChart) published an analysis of the second-largest cryptocurrency by market capitalization, Ether (ETH), in an investor report. Analysts from the bank suggested that a realistic price target for ETH by the end of 2026 would be $8,000, assuming continued adoption of blockchain-based applications.
Standard Chartered is a British financial institution with a global presence and a strong focus on Asia. The bank manages nearly $820 billion in customer funds and is considered a systemically important financial institution by the Financial Stability Board (FSB). Since mid-2021, StanChart has been involved in the cryptocurrency sector alongside its traditional banking services. Recent analyses of leading cryptocurrencies emphasize the positive outlook of this multinational bank.
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Medium-term Ether price target of 8,000 USD
Despite the "crypto winter" of recent years, StanChart analysts remain optimistic about the sector. In an investor letter, the head of the Forex Research department stated that Ether (ETH) could reach a price of $8,000 in the next two years. This assessment is based on forecasts of future use cases. In the longer term, analysts shared an evaluation of the second-largest cryptocurrency of up to $35,000.
"We view the $8,000 level as an intermediate step toward our long-term 'structural' valuation of $26,000-35,000. This valuation is based on future use cases and revenue sources that may not have fully emerged yet, although real-world use cases in gaming and tokenization should support their development." - Geoff Kendrick, StanChart Research Head for Forex and digital assets
StanChart acknowledged that an Ether price increase might take longer than Bitcoin's, but Kendrick believes the upside potential is greater. He anticipates future network upgrades, especially "Danksharding," which should enhance Ethereum's dominance in DeFi. "Danksharding" is a network upgrade that would significantly increase Ethereum's scalability. Additionally, the rising popularity of blockchain gaming and tokenized assets could further drive activity on the network.
StanChart: Questionable crypto predictions
The Standard Chartered Bank also holds a positive outlook for Bitcoin. In July, Kendrick's analyst team issued a price forecast of up to $120,000. The increased profitability of miners due to this year's price surge means fewer Bitcoin needs to be sold to cover mining costs. This reduction in the net supply of Bitcoin, combined with the Bitcoin halving expected in spring 2024, offers price support to the digital asset.
As always, it's important to approach the financial institution's analyses with caution. Two years ago, the Research Head predicted a price increase of $100,000 by the first half of 2022, based on the increasing dominance as a digital medium of exchange. However, not long after, in December 2022, the bank anticipated a potential Bitcoin price drop to $5,000.
