Standard Chartered raises its Ethereum forecast to $25,000 by 2028, expecting the stablecoin market to grow 8 times to drive demand.
Standard Chartered has shown significant optimism regarding Ethereum's prospects by sharply raising its price target amid increasing institutional demand and a clearer regulatory framework. On August 13, the bank adjusted its year-end 2025 forecast for ETH to $7,500 from a previous estimate of $4,000, while also raising its 2028 forecast to $25,000 from the old figure of $7,500.
New estimates released by Geoff Kendrick, Head of Digital Asset Research, mark a significant increase from previous targets and are nearly 60% higher than Ether's recent multi-year peak of $4,700. Kendrick believes this upward adjustment is driven by increased token holdings, broader market participation, and the dual appeal of Ethereum as both a staking asset and a core infrastructure for decentralized applications.
The Genius Act and the stablecoin market boom
A major driver of this optimism stems from the U.S. passing the Genius Act, a law that establishes a legal framework for USD-pegged stablecoins. Kendrick emphasizes the crucial role of Ethereum in this ecosystem, stating that the bank forecasts the stablecoin sector will grow about 8 times by the end of 2028, significantly impacting transaction fees on the Ethereum network.
As the majority of stablecoins are issued and traded on the Ethereum blockchain, growth in this sector is expected to drive higher demand for Ether to pay transaction fees. Ethereum has risen over 50% in the past month, supported by expectations of increasing blockchain adoption from traditional financial institutions.
Standard Chartered's long-term vision is based on Ethereum's Layer 1 blockchain capability to scale processing of high-value transactions, particularly those related to traditional finance. Kendrick also forecasts that the amount of ETH held in corporate reserves could account for up to 10% of the total supply, similar to the trend of Bitcoin accumulation by companies.
Standard Chartered's forecast is not isolated in the wave of optimism surrounding Ethereum. Tom Lee of Fundstrat believes that Ether could reach $16,000, while Matt Hougan, Chief Investment Officer of Bitwise, predicts a 'shock in Ethereum demand' as institutional buying through exchange-traded products and corporate reserves may exceed new supply at a ratio of 7:1.
An increasing number of companies like Bitmine and Sharplink Gaming are accumulating large amounts of ETH, following the trend of businesses adding cryptocurrency to their reserves. While some analysts warn that these forecasts depend on ambitious adoption scenarios, proponents point to the expanding practical use cases of Ethereum and its strong position in the DeFi space as the basis for sustainable price growth.
