A TOP Global Bank, Standard Chartered, has drastically reduced its price forecast for Ethereum (ETH) before 2025, reducing it from $ 10,000 to just $ 4,000. The bank points to major problems in the Ecosystem of Ethereum, in particular Layer-2 networks such as base, that value the most important network of Ethereum. This sharp downgrade is struggling when Ethereum is struggling, with its price that is falling heavily this year.
Ethereum price objective reduced by 60%
At the beginning of the year, Standard Chartered was optimistic about Ethereum, with predictive that it could reach $ 10,000 by the end of 2025. In the meantime, Standard Chartered Bank has that his Ethereum fell price objective Up to just $ 4,000. Indeed, the relocation has reduced the bank by 60%and dropped from the previous $ 10,000.
The performance of Ethereum, however, was weak and lost more than 45% of its value this year. In comparison with Bitcoin, ETH has fallen by 35% since January and 13% in March.
One of the main reasons for this underperformance is the rise of Layer-2 solutions. These networks, such as base, process many transactions that would otherwise have taken place on the most important blockchain in Ethereum.
Standard Chartered states that these low-2s retain a large part of the transaction costs without giving much back to the Ecosystem of Ethereum. This shift has caused a decrease in the economic power of Ethereum.
Possible solutions for ETHs Drop
Standard Chartered suggests that Ethereum could lose even more market share if no action is taken. An idea is to introduce a tax on Layer-2 networks that retain too much profit without reinvesting in the Ethereum ecosystem.
This would be similar to how some countries tax foreign companies that extract resources without benefiting the local economy.
The bank also predicts that the value of Ethereum will continue to fall compared to Bitcoin, with the ETH/BTC ratio that may fall to 0.015 by 2027. If this happens, this would be the lowest state of Ethereum against Bitcoin since 2017.
Can Ethereum restore?
Although Ethereum stands for challenges, it still has a strong position in the Cryptomarkt. From now on is the ETH price trade around $ 1910 reflection of a decrease of almost 5% in a week with a market capitalization that affects $ 230 billion.
