Standard Chartered Bank has predicted that the value of Ether, the second-largest cryptocurrency, could surge more than five-fold by the end of 2026. According to Geoff Kendrick, the Head of FX Research at StanChart, Ether may hit $8,000 in the next two years due to its increasing use in blockchain-based contracts, gaming, and the tokenisation of traditional assets. Kendrick also noted that the valuation estimate of $8,000 would be a stepping stone towards a long-term valuation of $26,000-$35,000. However, he clarified that this long-term estimate is for the year 2040.
Assessing the value of cryptocurrencies brings inherent challenges, as they lack the traditional assets that serve as benchmarks for stocks, bonds, or currencies. The value of crypto tokens is largely driven by investor sentiment. Kendrick stated that the bank’s valuation assumes the emergence of future use cases and revenue streams, particularly in gaming and tokenisation, which should support the development of cryptocurrency.
Ether has experienced a 30% increase in value this year. However, it remains significantly below its all-time high of approximately $4,869, reached in November 2021. Standard Chartered Bank’s prediction follows their earlier forecast that Bitcoin, the leading cryptocurrency, could reach $50,000 this year and $120,000 by the end of 2024. Currently, Bitcoin is trading at around $27,275.
It is important to note that while these predictions are based on expert analysis, the cryptocurrency market is highly volatile and subject to unpredictable changes. Investors should exercise caution and conduct thorough research before making any investment decisions.
The increasing interest in cryptocurrencies and their potential value growth raises questions about their role in the future of finance. As digital assets continue to gain popularity and acceptance, regulators and financial institutions around the world are closely monitoring their impact on the economy and considering ways to regulate and integrate them into the existing financial system.
Cryptocurrency enthusiasts are eagerly awaiting the predicted rise in Ether’s value, while skeptics remain cautious about the volatility and potential risks associated with investing in digital assets. As the crypto market continues to evolve, it remains to be seen whether these predictions will materialize and contribute to the wider adoption of cryptocurrencies in everyday transactions.
This article was written by Tom Wilson and Elizabeth Howcroft, and edited by Louise Heavens.
More detail via Daily Mail Online here… ( Image via Daily Mail Online )