Standard Chartered optimistic about ETH’s future
The British bank shared its view in a research note published yesterday. Standard Chartered explains that ETH remains very much tied to Bitcoin (BTC) in terms of price, but that the second cryptocurrency has several advantages over its bigger sibling.
The bank believes that Ethereum’s value proposition sets it apart from others, thanks to the decentralised applications that are built on the blockchain. It also notes its adaptability, with the introduction of Proof-of-Stake and sharding.
From a performance perspective, Standard Chartered points out that Ethereum 2.0 will process far more transactions per second than its Proof-of-Work competitors, and that its new ” burn ” model has allowed it to be more deflationary.
All of this makes Standard Chartered very optimistic about the future of ETH:
” Structurally, we’re giving Ethereum [sic] . $26,000 to $35,000 in value. »
A success story that relies partly on Bitcoin
But for that to happen, Bitcoin will have to outperform as well. According to Standard Chartered, ETH will only reach that price if BTC trades above $175,000. This threshold is the most optimistic forecast for Bitcoin, again according to the bank.
If so, Ether’s market capitalization would eventually catch up to Bitcoin’s, the ” flippening” so long awaited by some of the crypto community. Standard Chartered notes, however, that making the ETH bet is riskier:
” While the potential returns May be more important for ETH than BTC, the risks are also higher. “
“StanChart” always favorable cryptocurrencies
Standard Chartered had already distinguished itself by its openness to cryptocurrencies – a relatively rare thing in the banking industry. Earlier this summer, it had announced that it wanted to offer a trading platform aimed at European institutions.
At the time, the bank reiterated its strong confidence in these new assets:
” We strongly believe that digital assets are here to stay and will be adopted by the institutional market as a very relevant asset class. »
On the same subject – Institutional investors turn to ETH and ADA and abandon Bitcoin
Ether (ETH) is slowly recovering from its fall
For now, ETH has mostly made a grosse fray. It fell in concert with the other cryptocurrencies in the day yesterday, losing -23% in a few hours:
Source: TradingView, ETH/USDT
ETH’s capitalization this morning stands at $400 billion. The altcoin is trading for $3,400, which is 21% lower than its previous high set last May.
It is noted that over the last 24 hours, all crypto-currencies in the top 10 show falls between -12 and -23%. Over the week, only Solana (SOL) manages to make up for the drop, thanks to its meteoric rise over the past few days.
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About the author : Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that come from blockchain and I love digging up the juiciest news to share with you.
All articles by Marine Debelloir.