UK Big Bank Standard Chartered Predicts 35k Ethereum, 170k Bitcoin

UK Big Bank Standard Chartered Predicts 35k Ethereum, 170k Bitcoin

Ethereum has seen some optimistic price predictions this year, while a lot of analysts have been on the conservative side. Others have gone the route of being overly optimistic, with some putting the price of the altcoin at twenty thousand dollars, as in the case of real vision founder Raoul Pal, but none has gone as high as where the British banking giant Standard Chartered puts the price of the asset.

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There has been widespread sentiment in the market regarding the potential of Ethereum to overtake Bitcoin at some point, and it looks like institutions believe this too. Last month, Devere CEO Nigel Green said in a statement that Ethereum was set to outperform Bitcoin in the long run. Green pointed to numbers from the past year, which showed that the former was already outperforming the latter in the market, giving it a timeline of five years.

Standard Chartered’s analysts believe that Ethereum has more room to go up and could even surpass Bitcoin as the number one cryptocurrency by market cap. The technicals show that Ethereum is primed to retrace before advancing further. Standard Chartered believes that Ethereum is undervalued.

Standard Chartered released a new report on crypto on Tuesday and it showed the bank’s view on cryptocurrencies with a focus on Bitcoin and Ethereum.

The report showed the banking giant had a more favorable view on Ethereum, which it believes is superior to Bitcoin because it is akin to a financial market. The rise of decentralized finance has seen the rise of protocols offering alternatives to traditional financial services like lending, borrowing, and yield farming. The blockchain’s recent London hard fork has brought a lot of attention to Ethereum, with 224,700 Ethereum burned to date and another seven million, five hundred tokens locked in Ethereum 2.0 deposit contracts.

Standard Chartered is one of the latest financial institutions to make the bullish case for Ethereum. In a recent report, the British banking giant said that Ethereum could be thought of as a financial market as it enables users to lend and earn interest on investments, among many other services. Such an immense utility could allow Ethereum to catch up with Bitcoin’s market capitalization, the report said.

The multinational banking and financial services company put a $26,000 to $35,000 price target on Ethereum once Bitcoin crosses $175,000, representing a 1,000% increase from the current levels. A 35 000 Ethereum would give Ethereum a market cap of roughly 4 trillion dollars depending on the deflationary impact of its EIP1559 update.

At first glance, Standard Charter’s prediction for both cryptos may seem too wild to be true, but a look at the charts for both assets shows that the analysts are onto something here. To the present day, Bitcoin has increased by approximately 38% since 2021. Ethereum, on the other hand, has increased by 240% this year alone. Year-over-year analysis shows that Ethereum has consistently outperformed Bitcoin in the market. Coupled with its use cases, this makes it a prime candidate for institutional investments.

One thing the Standard Chartered’s report does acknowledge, though, is the importance of Bitcoin growth to that of Ethereum. Although it is bullish on Ethereum, it acknowledges that for Ethereum to get to the predicted price point, Bitcoin would actually need to first get to its predicted $175,000.

Although several new competitions have been developed, experts often suggest that Ethereum’s first mover advantage has positioned it for long-term success even though newer and more environmentally friendly technologies have been developed. However, because cryptocurrencies are only valuable due to community buy-in, the commitment of users is more important than being first. Thankfully, Ethereum has both.

‘I think the first mover advantage is real,’ says John Zannos, a partner at Inflection VC, an early stage venture firm investing in the open economy and blockchain companies. ‘But what’s more important to me is the health and the size of the community and how many developers are coming into that community because that’s going to drive innovation.’

Although new blockchains like Solana and Cardano also provide similar functionality to Ethereum and have their own native cryptocurrencies, experts say Ethereum is well positioned to grow with its users and meet evolving demand in the future. ‘Ethereum could rapidly expand capacity if it wanted to,’ says Raza Khan, an investor in the fintech industry and founder of the blockchain platform, Be. For now, it seems the Ethereum community is okay with waiting to see if it does. If cryptocurrency and NFT become household terms in 2021, when Web 3 could make a run at it for 2022.

Web3 refers to an open-access version of the internet built on blockchain technology where financial transactions are more transparent. Individuals have more ownership over their data and, through cryptocurrency, users own most of the infrastructure. Companies like Ethereum and similar blockchains like Solana, Cardano, and Tezos are working to develop the infrastructure on which the future vision of Web3 can be built. Investors see these new developments as similar to the .com boom, when Google, Facebook, and Apple first came into public awareness.

‘2022 will be the battle for Web 3 and the next evolution of the internet,’ says Balina. Despite Ethereum’s competition and other factors contributing to its ongoing volatility, there’s a general sense of optimism that the original smart contract blockchain will make it through this era of trials.

‘Ethereum has over 90% of the NFT market. This is going to be a very important year for Ethereum, a kind of make-or-break year,’ said Arslanian. With good reason to expect a quick recovery from the current slump, Zannos tells the next advisor:

‘What I think Ethereum has is that momentum of a community that allows a group of very smart people to create innovation and see new opportunities,’ Zannos says. ‘At the core, my optimism is tied to just the versatility of what you can do with Ethereum.’

What do you think? Do you believe Ethereum will go to a new all-time high this year? Will it eventually get to $35,000 as predicted by Standard Chartered?

[This article is a transcription of a video made by Savvy Finance]

Original video: https://youtu.be/Un4duWXISEc ]