Standard Chartered sees Ether price rising to $7,500 by 2025 due to ETF demand, stablecoins, and Ethereum upgrades.
- Ether demand from ETFs and treasuries is rising fast.
- Stablecoins make up 40% of blockchain fees, mostly on Ethereum.
- Ethereum upgrades aim to boost onchain transaction power.
Bank Sees Strong Growth in Ether Demand
Standard Chartered now expects Ether (ETH) to reach $7,500 in 2025. This is a big jump from its earlier forecast of $4,000. The bank says the rise is fueled by ETF investments, company treasuries buying ETH, and growth in stablecoins.
Since early June, ETFs and companies have bought 3.8% of all Ether. This buying rate is faster than Bitcoin’s during this year’s election cycle. The bank said there’s now more support from the Ethereum Foundation and Etherialize too.
Ethereum Upgrades Boost Network Capacity
Vitalik Buterin wants to speed up Ethereum’s base layer by 10 times. The goal is to handle more large transactions directly on the blockchain. Small transfers could move to layer-2 networks like Arbitrum and Base. This would help Ethereum support the growing demand.
Stablecoins Now Drive Blockchain Activity
Standard Chartered points to the GENIUS Act passed in July as a key reason for growth. This law sets rules for using stablecoins, making it easier for companies to adopt them. Over 50% of all stablecoins now run on Ethereum. These coins generate 40% of total blockchain fees.
US Banks Worry About Stablecoin Yield Loophole
US banking groups, led by the Bank Policy Institute, want Congress to close a rule gap in the GENIUS Act. The law blocks stablecoin makers from giving yield, but doesn’t clearly stop their partners from doing it. Banks fear this could lead to large withdrawals from the regular banking system—up to $6.6 trillion.
They argue that offering returns on stablecoins could make it harder for banks to attract savings. This would limit the cash banks need to make loans.
Terraform Labs Co-founder Pleads Guilty
Do Kwon, co-founder of Terraform Labs, pleaded guilty to fraud and conspiracy. He made a deal with US prosecutors, who will not push for more than 12 years in jail. The crimes are linked to his role in the Terra collapse. The court will sentence him on December 11.
Source: cointelegraph.com
