A UK-based financial company has revised its cryptocurrency price forecasts, including Ethereum. Geoffrey Kendrick discusses the main changes and their market implications.
Revised 2025 Altcoin Price Predictions
Geoffrey Kendrick, the global head of cryptocurrency asset research, revised his predictions for Ethereum in the report titled 'Ethereum – Midlife Crisis'. He highlighted that layer 2 solutions are driving significant gains in the Ethereum ecosystem. Kendrick noted that Base alone has attracted nearly $50 billion in value from the main network.
Future Outlook for Ethereum (ETH)
Kendrick mentions that necessary changes in the network could have destructive consequences. The transition to PoS removes the need for proof-of-work, and layer 2 solutions generate 'super profits'. This includes the Dencun upgrade which strengthens these solutions. The transfer of fees through the Base network to Coinbase does not support the Ethereum network. It diversifies Coinbase's revenues but extracts cash from Ethereum.
Long-term Ethereum Growth and RWA Sector
Despite Ethereum maintaining over 50% in total value locked (TVL) in DeFi and hosting 57% of stablecoins and 80% of tokenized assets, its dominant power is waning. Standard Chartered suggests solutions must be considered for long-term ETH growth. According to Kendrick, Ethereum must continue its strong growth in the RWA sector, where it holds an 80% market share. This will create consistent demand on the network. Upcoming technical upgrades, like Pectra, could provide supportive improvements in scalability and fee dynamics for Ether.
The changes in Ethereum forecasts reflect significant market shifts. New technical solutions and strategies may shape the future of this blockchain.
