2 hours ago
Ether's (ETH) structural diminution is expected to continue, concern slope Standard Chartered (STAN) said successful a probe study Monday slashing its 2025 year-end terms people for the world's 2nd largest cryptocurrency.
Standard Chartered said it present sees ether astatine $4,000 astatine the extremity of the year, down from $10,000 previously. Ether was trading astir $1,903 astatine work time.
"Ether is astatine a crossroads," the study said, and portion it "still dominates connected respective metrics," this dominance has been falling for immoderate time.
Layer 2 blockchains were meant to amended scalability connected the Ethereum blockchain, but Standard Chartered estimates that Coinbase's (COIN) Base has reduced ether's marketplace headdress by $50 billion, and said it expects this inclination to continue.
Market forces could yet halt this structural decline, "especially if tokenized real-world assets were to turn significantly," arsenic "ETH's information dominance means it should support its 80% stock of this market," wrote Geoff Kendrick, caput of integer assets probe astatine Standard Chartered.
Still, "Only a proactive alteration of commercialized absorption from the Ethereum Foundation – specified arsenic taxing furniture 2s – could execute that now," which the slope said was unlikely.
Standard Chartered said its expects the ETH/BTC ratio to diminution to 0.015 by year-end 2027, the lowest level since 2017.
The slope inactive sees a betterment successful the ether terms from the existent level astir $1,900, arsenic a rally successful bitcoin (BTC) is expected to assistance each integer assets, but the cryptocurrency's underperformance volition continue.
Read more: Ether Has Underperformed, but Total Value Locked connected Ethereum Is Rising: Citi
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