Standard Chartered has updated its forecasts for Ethereum with a new target of $7,500 by the end of 2025, significantly increasing from previous expectations.
Increased Interest in Ethereum
Standard Chartered has raised its year-end price target for Ethereum (ETH) to $7,500 from a previous forecast of $4,000. The bank's positive outlook is based on record inflows in ETFs and heightened demand for stablecoins.
Positive Outlook for Stablecoins
In its research, the bank noted that Ether treasury businesses and ETFs have acquired 3.8% of the circulating ETH supply since June 1, nearly double the fastest Bitcoin accumulation rate observed during the 2024 U.S. election cycle. This demand shock has been a primary catalyst for the recent price rally.
Technical Improvements and Markets
The bank expects the third-largest cryptocurrency to outperform Bitcoin over the next twelve months, with the ETH-BTC rate rising from 0.036 to 0.05 by the end of 2025. Ethereum co-founder Vitalik Buterin plans to enhance layer-1 throughput by 10x to support more high-value on-chain transactions.
Standard Chartered highlights significant shifts in the market dynamics surrounding Ethereum driven by increasing investor interest and anticipated technical improvements, which may lead to further price growth for digital assets.
