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- 1 Bitcoin price’s bull run is expected to push other crypto assets to attain new highs and Ethereum leads the followers.
- 2 Following the same lead, a report found that the ETH value will be five times by 2026.
Whenever a bull run is imagined, Bitcoin (BTC) is the apparent leader of it. The flagship cryptocurrency indeed deserves the charm it has got. But another top cryptocurrency, second to Bitcoin, Ethereum (ETH), goes in tandem to attain the heights. Recently, Standard Chartered stated that Ethereum’s price can hit $8,000.
In a recent report, British multinational bank Standard Chartered noted that Ethereum holds the potential to hit the trading price of $8,000 by 2026. Given the currency price of around $1,600, the expected price mark seems far-fetched but the banking institution put arguments in support of its claims.
Forex and crypto research head at Standard Chartered, Geoffrey Kendrick, added comments on the report that the dominance of Ethereum as a smart contract platform across the space is clearly visible. Gaming and tokenization are going to increase in the years to come.
Together, the aforementioned factors will contribute to making the ETH price attain the unprecedented high of $8,000. The second biggest cryptocurrency will need to take a huge leap of five times from the current price level, the executive added.
Reiteration of Previous Claim for Ethereum to Hit $35,000
Standard Chartered has not thrown a potential target for Ethereum to attain ahead. The UK bank took a similar bullish take on the second biggest crypto asset and estimated it can trade within the range of $26,000 to $35,000 in the years to come. However, it was said to come after a crucial obligation of Bitcoin (BTC) hitting $175,000 first.
Kendrick reiterated the previous claim and positioned the recent one of $8,000 as the initial step for the crypto asset.
The long-term valuation of Ethereum in the range of $26,000 to $35,000 is based on assumptions about future use cases and revenue streams that may not have fully materialized yet.
However, Kendrick believes that real-world use cases in areas such as gaming and tokenization will provide the necessary support for these developments.
In other words, as Ethereum’s ecosystem continues to evolve and new applications and use cases emerge, it is expected to drive the platform’s value in the long run. This reflects the ongoing growth and diversification of the Ethereum network.
Ethereum Layer 2 scaling networks are expected to experience growth, primarily due to upcoming technical upgrades on the Ethereum network. These upgrades, such as proto-danksharding, aim to reduce transaction fees on Layer 2 platforms. As a result, Ethereum’s dominance in the smart contract space is likely to be strengthened.
While this may not immediately impact earnings, it is expected to have a positive effect on Ethereum’s Price-to-Earnings (P/E) ratio in the coming years. This underscores the importance of ongoing technical advancements in the Ethereum ecosystem.
The upcoming Bitcoin halving, expected around April 2024, is anticipated to have a positive impact on all digital assets, with Ethereum (ETH) benefiting as the second-largest cryptocurrency.
Additionally, Kendrick suggests that potential regulation and the introduction of spot Exchange-Traded Funds (ETFs) in the United States should provide benefits to ETH similar to those of Bitcoin (BTC). These developments are projected to play a role in supporting the value and adoption of Ethereum with the timeline for potential ETFs set for late 2024, following the U.S. election.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
