Standard Chartered, the international bank, has ventured into the realm of audacious price predictions regarding Ethereum, the world’s second-largest cryptocurrency. Yet, considering the prevailing market conditions, one might wonder about the feasibility of this forecast.
On October 11, analysts from Standard Chartered made a bold proclamation, suggesting that Ethereum’s value could ascend to an impressive $8,000 by the conclusion of 2026.
The Chief of Digital Assets Research at the bank, Geoff Kendrick, contended that the burgeoning utilization of Ethereum in smart contracts, gaming, and the tokenization of traditional assets would propel its market value significantly.
In fact, he didn’t halt at the $8,000 estimate, as he foresaw even more remarkable long-term growth, envisioning a structural valuation range between $26,000 and $35,000.
Kendrick’s perspective extends well into the distant future, reaching as far as 2040. He clarified that this valuation presupposes forthcoming use cases and income streams, some of which might not have manifested yet. Nevertheless, the concrete real-world applications in gaming and tokenization are expected to underpin these developments.
Analyzing Ethereum’s historical performance in previous market cycles could offer some insight into the potential trajectory in the next cycle. Since its inception in 2015, Ethereum has weathered only two major market cycles.
To put this into perspective, in January 2017, Ethereum traded at approximately $10, and within a year, by January 2018, it had skyrocketed to $1,450, marking an astounding 14,000% gain. However, by December 2018, it had tumbled to a bear market low of $85. From that point, it embarked on a relentless ascent, culminating in an all-time high of $4,878 in November 2021, translating to a remarkable 5,600% gain.
As of June 2022, Ethereum’s recent cycle low was approximately $1,000. To reach the bank’s projected price of $8,000 in the next bullish market phase, Ethereum would only need to realize a 700% increase. This appears plausible when scrutinizing its previous market performance.
Furthermore, various fundamental factors, including deflationary issuance, staking, scaling improvements, and institutional adoption, all contribute to the bullish outlook for Ethereum in the long term.
However, it’s important to note that this substantial Ethereum price prediction appears quite distant from the current state of the market. Ethereum is currently trading at a relatively stagnant $1,561, having dipped around 5% over the past week. It is hovering around support levels, and its current value is the lowest since a significant drop in mid-March.
Ethereum’s present price is notably 68% below its all-time high, which was attained nearly two years ago.