The second-largest cryptocurrency, Ether, may increase in value by more than five times by the end of 2026, predicts major financial institution Standard Chartered (STAN.L).
According to StanChart Head of FX Research, West Geoff Kendrick, Ether may reach $8,000 over the next two years as it is increasingly often employed in “smart contracts,” blockchain-based agreements, gambling, and the “tokenisation” of conventional assets.
On Wednesday, the price of Ether was at $1,575. Determining the worth of cryptocurrencies is challenging since instruments used to assess stocks, bonds, and currencies are not available for tokens like etheEtherbitcoin, which are not backed by conventional assets. The mood of investors is often what determines the price of cryptocurrency tokens.
“We see the $8,000 level as a stepping stone to our long-term ‘structural’ valuation estimate of $26,000-$35,000,” wrote Kendrick, who oversees the bank’s research into digital assets.
“That valuation assumes future use cases and revenue streams that may not have emerged yet, although the real-world use cases of gaming and tokenisation should support their development.”
According to Kendrick to Reuters, the structural valuation assessment was “very long term, say 2040.”
Despite gaining nearly 30% this year, ether is over 70% behind its all-time high, reached in November 2021 at roughly $4,869 per unit. According to a July report by StanChart, the most popular cryptocurrency, bitcoin may hit $50,000 this year and $120,000 by the end of 2024. The most recent price of Bitcoin was about $27,275.