According to the latest predicitons, it seems that the second digital asset by market cap could see a price explosion of over 2,100%. Check out the latest reports about the price of ETH.
New ETH price prediction is out
According to a recent article by CNBC, Standard Chartered, one of the world’s largest banks, believes that Ethereum (ETH), a smart contract platform, could experience a significant growth of more than 2,100%.
The bank predicts that Ethereum’s price will eventually reach as high as $35,000, after reaching $8,000 in about three years.
One of the reasons behind this price forecast is the increasing use cases and layer-2 scaling solutions built on Ethereum, as highlighted by Geoffrey Kendrick, an analyst at the London-based bank.
“We think Ethereum’s established dominance in smart contract platforms, along with emerging uses in gaming and tokenization, has the potential to push ETH to the $8,000 level by end-2026 [which is] a stepping stone to our long-term ‘structural’ valuation estimate of $26,000-$35,000.”
CNBC reports that Kendrick believes that Ethereum’s greatest growth potential lies in gaming and tokenization of real-world assets.
He also expresses optimism concerning the planned upgrades for Ethereum.
In early 2024, Ethereum is expected to implement “proto-danksharding”, which would increase the network’s transaction speed and lower transaction costs.
Kendrick believes that Layer 2 scaling solutions will become increasingly important over time, especially as architecture upgrades expected in early 2024 sharply reduce fees on these platforms.
This should solidify ETH’s dominance in the smart contract space, thereby increasing its P/E (price to earnings) ratio over the next couple of years.
With ETH currently trading at $1,540, a rise to $35,000 would represent a 2,173% increase, while a move to $8,000 would be a 419% increase.
Just to refresh your memory, Standard Chartered is the 43rd largest bank in the world with $820 billion of assets under management.
Stay tuned for more juicy news from the crypto space.
