Standard Chartered Cuts Ethereum Price Target by 60% for 2025

Standard Chartered Predicts Major Drop in Ethereum’s Price by 2025

Standard Chartered has drastically lowered its Ethereum (ETH) price target for 2025 from $10,000 to $4,000, marking a significant 60% reduction. This adjustment reflects the bank’s concerns over the growing influence of Layer 2 solutions like Coinbase’s Base, which have started to significantly impact Ethereum’s ecosystem.

Geoffrey Kendrick, Standard Chartered’s Head of Digital Assets Research, explained that Layer 2s, particularly Base, have been extracting significant profits from Ethereum. He estimated that Base alone has removed $50 billion in market cap from Ethereum. Kendrick suggested that Ethereum needs to impose a ‘super tax’ on Layer 2 solutions to maintain the ETH/BTC ratio, which could dip lower if left unchecked.

Solana Co-Founder Responds to Standard Chartered’s Predictions

Solana co-founder Anatoly Yakavenko dismissed the concerns raised about a similar situation happening with Solana, referring to the Ethereum ecosystem’s “weak alignment.” Meanwhile, Ceteris, Head of Research at Delphi Research, criticized Standard Chartered’s $4,000 price target as unrealistic, stating that the bank is known for setting overly optimistic price predictions.

Ethereum’s price performance relative to Bitcoin has seen a dramatic downturn. The ETH/BTC ratio recently hit a new 5-year low, down 73% from its 2022 peak. For the past five years, Ethereum has consistently underperformed Bitcoin, and even U.S. equities, including the S&P 500.

Despite a 167% price surge from late 2023 to early 2024, Ethereum has been losing ground, with its price dropping to $1.9K. Some analysts, like Amberdata’s Greg Magadini, predict further shorting opportunities as ETH continues to struggle, especially given its poor market structure.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.