Standard Chartered has increased its year-end price prediction for ether to $7,500 from $4,000 because of rising industry involvement and higher cryptocurrency ownership.
The new forecast shows a 60% increase above Wednesday’s $4,700 more than three-year high. The U.S. Genius Act has driven a 50% increase in ether prices during the past month because it created a regulatory system for dollar-pegged stablecoins.
Geoff Kendrick who leads digital assets research at Standard Chartered predicts the stablecoin market will grow eight times larger by 2028 which will drive up Ethereum network fees. The majority of stablecoins use Ethereum as their transaction processing network which demands ether to execute operations.
The staking reward mechanism of ether distinguishes it from bitcoin because it allows investors to earn active returns. The financial institution raised its 2028 ether price prediction to $25,000 while forecasting that ether will gain more popularity in expensive financial operations.
Kendrick predicted that corporate treasuries will purchase 10% of all existing ether which will create sustained market demand.
