A new report from Citizens Bank highlights Ethereum’s strong fundamentals and expanding role across decentralized finance (DeFi), tokenization, and real-world asset markets. The bank said Ethereum’s dominance as the leading smart contract platform continues to grow thanks to its active developer base, modular scaling roadmap, and network effects that secure high transaction throughput.
According to the report, shared by Coindesk, Ethereum (ETH) could climb above $10,000 within the next two years, driven by rising institutional inflows and a rapidly shrinking supply. Out of roughly 120 million ETH in circulation, fewer than 50 million may remain liquid by 2027, as staking, treasury absorption, and the EIP-1559 fee burn remove coins from circulation. The bank compared this dynamic to a corporate stock buyback, where limited supply amplifies the impact of new demand.
Citizens added that institutional adoption, exchange-traded fund (ETF) inflows, and real-world asset (RWA) tokenization are fueling Ethereum’s next growth phase. Improved regulatory clarity is also enabling more traditional finance players to commit capital to the network, further solidifying its role as both fuel and collateral for the digital economy.
In conclusion, the bank said even moderate inflows could produce outsized effects in a constrained market. With network settlement volumes expanding and liquidity tightening, Ethereum’s long-term setup remains one of the most promising across the entire crypto sector.
