Standard Chartered Slashes Ethereum’s Price Forecast
Standard Chartered, the well-known British bank, has made significant revisions to its Ethereum forecast. It’s a wake-up call for crypto enthusiasts everywhere, as the bank reduces its price prediction for Ethereum by a staggering 60%.
Key Points
- Initial Ethereum price forecast for 2025 lowered from $10,000 to $4,000.
- Revision prompted by Ethereum’s shifting market share and competition from layer 2 blockchains.
- The Dencun upgrade played a critical role in reducing fees and increasing net issuance.
Standard Chartered: “Ethereum’s market valuation decreased by $50 billion due to GDP losses to Base,” marking a significant milestone in Ethereum’s journey.
Summary
The recent Dencun upgrade in March 2024 has been pivotal, leading to reduced fees but also reduced Ethereum’s share of blockchain activity as competitors like Base rise. Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, pointed out that Ethereum’s security advantage may not be enough to sustain it in the medium term.
Opinion & Analysis
With Ethereum’s market share increasingly under pressure from layer 2 solutions, it’s high time for the Ethereum Foundation to consider innovative strategies, perhaps even considering controversial moves like taxing these new challengers. Otherwise, maintaining control of the 80% market share for tokenized real-world assets might become a Herculean task.
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As Ethereum navigates these turbulent waters, the crypto community is holding its breath to see how one of the leading digital assets can potentially reshape its commercial direction.
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