Ether’s structural decline (ETH) should continue, said on Monday that the Investment Bank (Stan) research report said that in a research report, reducing its end-of-year price objective for the second largest cryptocurrency in the world.
Standard Charterd said that it is now ether $ 4,000 at the end of the year, compared to $ 10,000 before. Ether was negotiated about $ 1,903 at the time of publication.
“Ether is at the crossroads,” said the report, and although it “dominates several measures”, this domination has been declining for some time.
The blockchains of the layer 2 had to improve the scalability of the Ethereum blockchain, but the estimates of the chartered standard according to which the Coinbase base (Coin) reduced the market capitalization of Ether by $ 50 billion, and declared that it expects that this trend continues.
Market forces could possibly stop this structural decline, “especially if the active world tokenized were to increase considerably”, because “the domination of ETH security means that it should maintain its share by 80% of this market,” wrote Geoff Kendrick, manager of digital asset research at Standard Charterd.
However, “only a proactive change in the commercial direction of the Ethereum Foundation – such as taxing layer 2 – could achieve it now”, which, according to the bank, was unlikely.
Standard Charterd said that it expects the ETH / BTC ratio to be reduced to 0.015 by the end of 2027, the lowest level since 2017.
The bank always sees a resumption of the price of the current level around $ 1,900, because a Bitcoin gathering (BTC) should raise all digital assets, but the underperformance of the cryptocurrency will continue.
Read more: Ether has underperform, but the total value locked on Ethereum increases: Citi
