Standard Chartered has reiterated a bullish long-term outlook for Ethereum, with analyst Geoffrey Kendrick describing 2026 as “the year of ETH,” drawing parallels to its historic 2021 cycle.
Despite ongoing weakness across broader crypto markets, the bank expects Ethereum to significantly outperform other digital assets, including Bitcoin, driven by improving fundamentals and expanding real-world use cases.
Ethereum vs. Bitcoin: Relative Strength Improving
Standard Chartered argues that Ethereum’s underlying drivers have strengthened relative to Bitcoin, even as overall market sentiment remains fragile. According to the report, the bank expects the ETH/BTC exchange rate to recover toward its 2021 highs, signaling renewed relative dominance for Ethereum within the crypto market.
While Bitcoin’s recent performance has weighed on near-term projections, the bank views this as a cyclical drag rather than a structural issue for Ethereum.
Updated Price Targets Reflect Market Reality
The bank has revised its end-2026 Ethereum price target to $7,500, down from a prior estimate of $12,000, citing weaker-than-expected Bitcoin performance and its influence on broader crypto valuations.
Longer-term projections remain aggressive. Standard Chartered maintains a $40,000 Ethereum price target by the end of 2030, reflecting confidence in Ethereum’s role as the core settlement layer for on-chain finance.
Structural Advantages Powering Ethereum’s Thesis
The report highlights several structural advantages that position Ethereum for sustained growth:
- Stablecoins and Tokenized Real-World Assets (RWAs):
More than 50% of stablecoins and tokenized RWAs are already issued on Ethereum. Standard Chartered expects this share to rise as traditional finance increasingly moves on-chain, projecting the RWA market to reach $2 trillion by 2028. - Decentralized Finance (DeFi) Leadership:
Ethereum remains the foundational network for DeFi, providing deep liquidity, developer dominance, and network effects that competitors struggle to replicate. - Rising Network Activity:
Ethereum transaction volumes have reached new all-time highs, with stablecoin transfers accounting for 35%–40% of all transactions, underscoring growing real-world utility beyond speculation.
Regulatory Tailwinds Could Accelerate Upside
Standard Chartered also points to potential regulatory catalysts, including a more constructive U.S. policy environment. The possible approval of the CLARITY Act could support both Bitcoin and Ethereum, with a new Bitcoin all-time high in the first half of the year potentially acting as a launchpad for Ethereum’s longer-term upside.
Taken together, the bank sees Ethereum entering a phase where infrastructure dominance, institutional adoption, and regulatory clarity align, setting the stage for what it believes will be Ethereum’s most important cycle since 2021.
