One of the world’s largest banks reportedly believes that smart contract platform Ethereum (ETH) could rise more than 2,100%.
According to a new CNBC article, British bank Standard Chartered is to predict that Ethereum will eventually rise to $35,000 after reaching $8,000 in about three years.
Geoff Kendrick, an analyst at the London-based bank, says increasing use cases and layer 2 scaling solutions built on Ethereum are among the reasons for the price prediction.
“We believe Ethereum’s established dominance on smart contract platforms, along with its emerging applications in gaming and tokenization, has the potential to push ETH to the $8,000 level by the end of 2026. [which is] a stepping stone to our long-term ‘structural’ valuation estimate of $26,000-$35,000.”
According to CNBC, Kendrick believes that gaming and tokenization of real-world assets offer one of the biggest growth opportunities for Ethereum.
He also expresses optimism about planned Ethereum upgrades. In early 2024, Ethereum will implement “proto-dankharding,” which would increase the network’s transaction speed and reduce transaction fees.
“Layer 2 scale solutions… are likely to grow in importance over time, especially as architecture upgrades expected in early 2024 will significantly reduce costs on these platforms. This should help cement ETH’s dominance in the smart contracts space, driving its price-to-earnings ratio (P/E) to rise in the coming years.”
Since ETH is trading at $1,540 at the time of writing, a move to $35,000 would mean a 2,173% increase, while a move to $8,000 would mean a 419% increase.
Standard Chartered is the 43rd largest bank in the world with $820 billion in assets under management.
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