Standard Chartered projects a substantial value increase for Ether, the second-largest cryptocurrency, by 2026 due to broadening use cases in sectors such as gaming and blockchain-based contracts.

More Adoption in Blockchain-Based Contracts, Gaming

Standard Chartered's Head of FX Research, West, Geoff Kendrick, suggests that Ether may reach $8,000 within the next two years due to its broader utilization in blockchain-powered "smart contracts," as well as in gaming and the "tokenization" of traditional assets. Kendrick emphasizes the expanding practical applications for Ether's use and how these factors contribute to its position in the market.

Ether, currently trading around $1,575, has demonstrated a consistent upward trajectory. However, evaluating the value of cryptocurrencies remains challenging, as they lack traditional benchmarks like stocks, bonds, or currencies. Instead, crypto prices are primarily influenced by investor sentiment.

Kendrick told Reuters that the structural valuation estimate was "very long term, say 2040."

Standard Chartered views the $8,000 level as an intermediate milestone on the path to their long-term "structural" valuation estimate of $26,000-$35,000 for Ether, Yahoo Finance reported. Kendrick suggests that such a valuation considers potential future use cases and revenue streams that have yet to materialize fully.

Despite this uncertainty, real-world applications in gaming and tokenization are expected to support the continued development of Ether and its value.

Ether's Potential Long-Term Valuation, Use Cases

Ether has experienced a 30% increase in value since the beginning of the year but remains nearly 70% below its all-time high of approximately $4,869, reached in November 2021.

StanChart's positive outlook extends beyond Ether to other cryptocurrencies. In July, the bank stated that Bitcoin, the leading crypto token, could reach $50,000 by the end of this year and increase to $120,000 by the close of 2024. At present, Bitcoin is trading around $27,275.

The increasing utility of blockchain technology has paved the way for various innovative applications. Ethereum, the platform on which Ether operates, enables the execution of "smart contracts" - self-executing agreements that automatically facilitate transactions when specific conditions are met.

Furthermore, gaming and tokenizing traditional assets provide new avenues for the broader adoption and use of cryptocurrencies like Ether.

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