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StanChart Cuts Ethereum 2025 Forecast to $4K

The Most Important Points at a Glance

Standard Chartered (StanChart) has drastically lowered its Ethereum (ETH) price forecast for 2025 – from $10,000 to $4,000. The main reason is the growing dominance of Layer-2 solutions like Coinbase’s Base, which are taking significant market share away from Ethereum. Analysts see this as a threat to ETH’s long-term value performance.

Why Was the Ethereum Forecast Lowered?

According to Geoffrey Kendrick, Head of Digital Assets Research at StanChart, the Layer-2 solution Base has removed around $50 billion from Ethereum’s market capitalization. Layer-2 networks enable faster and cheaper transactions by bundling transactions off the Ethereum blockchain. As a result, Ethereum misses out on significant revenue from transaction fees.

Kendrick suggests that Ethereum should impose a “super tax” on Layer-2 networks to compensate for lost revenue. Otherwise, the ETH/BTC ratio could continue to decline, weakening Ethereum in comparison to Bitcoin.

Market Reactions and ETH Price Development

Ethereum has lost value against Bitcoin in recent years. The ETH/BTC ratio reached a five-year low of 0.22 – a 73% decline since 2022. Compared to the S&P 500 Index, Ethereum has also underperformed since 2018.

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After rising 167% between late 2023 and early 2024, the ETH price recently fell to $1,900. If the downward trend continues, further price losses to $1,600 or even $1,200 could follow.

Criticism of the StanChart Forecast

Not all analysts share StanChart’s pessimistic outlook. Ceteris, Head of Research at Delphi Research, considers the $4,000 forecast to be overly optimistic and points to StanChart’s often unrealistic predictions.

Anatoly Yakavenko, co-founder of Solana, sees Ethereum’s situation as critical but does not believe a similar scenario would push Solana into the single-digit range.

Our Assessment

The growing importance of Layer-2 solutions presents challenges for Ethereum. While these networks improve scalability, they also reduce Ethereum’s revenue. Whether a “super tax” on Layer-2 networks would be a viable solution remains questionable.

In the short term, Ethereum could remain under pressure, especially if the downward trend in the ETH/BTC ratio continues. In the long term, Ethereum’s development will depend on how the network handles competition from Layer-2 solutions and whether it finds new ways to maintain its value for users and investors.

Casinos: 51
Profile Ethereum
Symbol ETH
Coin type Alt Coin
Transaction Speed Medium
Pros
  • Second largest cryptocurrency
  • Accepted in many casinos
  • High transaction speed
Cons
  • Partial bugs in smart contracts
Further practical applications
Price $1,911.91
24h % -1.36 %
7d % -1.34 %
30d % -28.46 %
60d % -45.51 %
1y % -45.58 %
Market Cap $230,628,941,775.00
Official Links
Socials Reddit | X
Best 3 Ethereum casinos

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Last update: March 18, 2025

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