
Bitcoin · Ethereum › Analysis
Why Standard Chartered says Ethereum (ETH) could pump to $35,000
The London bank noted Ethereum could perform better than Bitcoin over the next few years, but not without its own set of risks.

Cover art/illustration via CryptoSlate
While the Bitcoin or Ethereum debate rages on between early investors and maxis, London-based bank Standard Chartered already seems to have picked a side.
The bank, in a recent research note, said Ethereum could outperform Bitcoin over the next few years, even stating it âstructurallyâ values the worldâs second-largest cryptocurrency by market cap at over $35,000.
âStructurally, we value Ethereum at USD 26,000-35,000…We see the Ethereum-Bitcoin cross doubling to 0.161, a level at which ETHâs market cap would catch up to BTCâs,â researchers at the bank noted, adding:
âAkin to being a currency like Bitcoin, it (Ethereum) is more akin to a financial market in which non-linear financial transactions such as lending, insurance, and exchanges can operate.â
Standard Chartered noted it was âthis logicâ that underpinned its absolute valuation estimates for Ethereum versus the US dollar and its relative valuation against Bitcoin.Â
The bank, in fact, stated that while Bitcoinâs valuation could be compared against the value of credit card companies, the valuation of Ethereum could be compared against the entirety of all global banks in terms of their market cap.
Ethereum grows on institutions
Ethereum has grown from its early âsound moneyâ narrative to an ecosystem that spans Web3 dApps, non-fungible tokens (NFTs), smart contract-based financial services, decentralized finance (DeFi), and much more.
The upcoming ETH 2.0 upgrade further bolsters Ethereumâs position in the crypto marketâmoving it from a âproof-of-workâ mechanism to a âproof-of-stakeâ consensus design. This sees it become a more environmentally friendly blockchain in the coming yearsâa narrative that would help parlay the negative press plaguing Bitcoin over the past year (for its supposedly climate-damaging nature).
Itâs a shift that even Standard Chartered pointed out. âThe shift has obvious environmental advantages,â the researchers wrote, adding âIt removes the need for excessive computer power to be used in âmining.â The switch from [proof-of-work (PoW)] to [proof-of-stake (PoS)] is expected to be gradually phased in during H1 2022.â
Meanwhile, Standard Chartered did point out that other ecosystems apart from Ethereum existed and could rival Ethereum. âSeparate ecosystems already exist and may continue to challenge Ethereum in niche areas…Moreover, âregulatory concerns related to Ethereum will be very different to those than Bitcoin,â the researchers wrote.
âWhile potential returns may be greater for ETH than for BTC, risks are also higher,â they ended.