Standard Chartered has sharply raised its price expectations for Ethereum, citing a noticeable improvement in the cryptocurrency backdrop over recent months.
The bank now sees Ethereum reaching $7,500 by the end of 2025, up from $4,000 previously, and $25,000 by the end of 2028, compared to $7,500 previously.
"Treasury companies and ETF funds have purchased 3.8% of all Ethereum coins since the beginning of June," highlighted Standard Chartered, noting that the pace is double the fastest rate of Bitcoin purchases from these sources.
The bank also noted strong participation from organizations behind Ethereum, including plans to significantly enhance productivity on the layer one blockchain.
One of the main drivers behind the more optimistic outlook is the passage of the U.S. GENIUS Act in July, which "unleashes stablecoins." Stablecoins represent 40% of all blockchain fees, and more than half of all stablecoins exist on Ethereum.
Standard Chartered stated that the legislation should indirectly boost activity on Ethereum's layer one as stablecoin liquidity stimulates more decentralized finance activity, where Ethereum dominates.
The long-term advantages of Ethereum - including its global reach, its position as the first mover in smart contracts, and a track record free from downtimes - remain intact, the bank noted. This structural strength, along with recent developments, "supports our more optimistic view."
The bank sees Ethereum becoming more likely to capture the largest share of blockchain efficiencies across industries from finance to consumer technology.
"The long-term potential of the Ethereum network is clear, as blockchain technology is set to bring enormous efficiencies to industries from finance to consumer technology," it said.
Ether jumped more than 50% last month, driven by the passage of the Genius Act, which establishes a regulatory framework for dollar-linked cryptocurrencies, or stablecoins.
The legislation raises prices in the cryptocurrency market based on expectations that it will stimulate broader adoption.
As most stablecoins are created and traded on the Ethereum network, this move has boosted demand for Ether, which is needed to cover transaction costs.