StanChart predicts a possible 500% increase in Ether’s value by 2026

Standard Chartered, a prominent global bank, anticipates that Ether, the world's second-largest cryptocurrency, might experience a surge exceeding five times its current value by the conclusion of 2026, marking its most recent forecast amid skyrocketing crypto prices.

According to Geoff Kendrick, StanChart Head of FX Research for the West, Ether could escalate to $8,000 within the forthcoming two years, propelled by its expanding utilization in blockchain-integrated agreements, known as "smart contracts," in addition to its applications in gaming and traditional asset "tokenization." On Wednesday, Ether was trading at approximately $1,575.

However, evaluating the worth of cryptocurrencies like Ether or Bitcoin presents a challenging endeavor due to their lack of backing from conventional assets and the absence of traditional financial instruments for pricing. Cryptocurrency prices are predominantly influenced by investor sentiment.

Kendrick, who also oversees the bank's digital assets research, penned, "We envisage the $8,000 mark as a preliminary step towards our long-term 'structural' valuation estimation of between $26,000 and $35,000."

He elucidated that this valuation is predicated on presumed future applications and revenue channels, some of which may have yet to surface. Nonetheless, the tangible use cases in gaming and tokenization should underpin their evolution.
In communication with Reuters, Kendrick noted that this structural valuation estimation looks exceedingly forward, possibly to around 2040.

Year-to-date, Ether has witnessed a growth of approximately 30%, albeit it still lingers nearly 70% beneath its historical peak of roughly $4,869, achieved in November 2021.

In a previous statement in July, Standard Chartered projected that Bitcoin, the premier crypto token, could attain $50,000 within this year and potentially escalate to $120,000 by 2024's end. Bitcoin's most recent trading value hovered around $27,275.