In order to achieve the forecast of $8000, ETH's market value needs to reach $744 billion. Under certain conditions, this may be possibleStandard Chartered Bank predicts ETH's three-year performance will rise by 400%Meeting this prediction will depend on several factors within the Ethereum blockchainStandard Chartered Bank has recently abandoned its forecast for Bitcoin and shifted its focus to Ethereum
In order to achieve the forecast of $8000, ETH's market value needs to reach $744 billion. Under certain conditions, this may be possible
- Standard Chartered Bank predicts ETH's three-year performance will rise by 400%
- Meeting this prediction will depend on several factors within the Ethereum blockchain
Standard Chartered Bank has recently abandoned its forecast for Bitcoin and shifted its focus to Ethereum. During this process, he pointed out that by 2026, the price of the King of Shanzhai Coins may reach $8000. Here, it is expected that the price represents a 400% increase in the current value of ETH
The enormous potential of ETH
Based on the details shared by BusinessInsider, the financial institution provided the reasons for its prediction. Geoff Kendrick, the director of foreign exchange and digital asset research at the company, pointed out that ETH prices may be higher than BTC. He said,
We believe that the path of ETH price increase may take longer than BTC, but we believe that relative to current levels, ETH will eventually reach a higher price multiple than BTC (5.0 times and 3.5 times)
Previously, Kendrick led Standard Chartered Bank to release a report predicting that Bitcoin prices would reach $120000 in 2024. But this time, the report shared ETH's long-term forecast, stating that its price may fluctuate between $26000 and $35000 at some point.
In order to achieve the forecast of $8000, ETH's market value needs to reach $744 billion. Kendrick stated that the continuous improvement of Ethereum blockchain is crucial for the expected price trend.
In addition, he also cited examples such as danksharding, blockchain gaming, and real world asset (RWA) tokenization, as some industries are expected to drive growth.
Proto danksharding, proposed by Ethereum, is a way of aggregating data on the blockchain, allowing for cheaper data to be added to the block. According to Standard Chartered Bank, this implementation may drive an increase in transaction volume and reduce transaction costs, thereby having a positive impact on the price of ETH. He added,
This should help consolidate ETH's dominant position in the field of smart contracts, thereby increasing its P/E ratio (if not profitability) in the coming years
RWA is also important
On RWA, some progress has been made with projects such as MakerDAO [MKR] adopting this method. According to DuneAnalytics, the RWAERC-20 token has also increased.
Examples of these tokens include GFI, FACTR, ONDO, etc. In addition, there are approximately 44700 RWA token holders, of which over 25000 have joined in the past 365 days.
If the number of holders continues to increase, the adoption of ETH may follow. This is also an appropriate reason for increasing accumulation and increasing the value of coins. Kendrick pointed out that,
The initial obvious benefit of tokenization is that it allows partial ownership of previously unstable or illiquid investments (such as real estate) at a low cost; compared to other partial ownership models (such as initial public offerings), the costs associated with tokenization are very low
As of the time of publication, the weighted sentiment surrounding Ethereum has improved to 0.454. Weighted emotions take into account the unique social volume of the market's perception of the project.
Therefore, the positive range of this indicator indicates that market participants have a bullish sentiment towards ETH, even in the short term.
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