Ethereum price target raised to $7,500 by Standard Chartered on stablecoin boom

Standard Chartered has raised its year-end 2024 price target for ether to $7,500, up from $4,000, citing rapid growth in stablecoin adoption and increased holdings of the cryptocurrency in recent months.

The revised forecast marks a near 60% premium to ether’s 3-1/2 year high of $4,700 reached on Wednesday. Ether, the world’s second-largest cryptocurrency, has gained more than 50% over the past four weeks, supported by both regulatory developments and broader industry engagement.

The latest forecast signals a strong institutional outlook for Ethereum, with banks and asset managers closely monitoring the impact of regulatory clarity on crypto asset demand.

This momentum has also attracted new retail interest, with trading volumes surging across major exchanges and decentralised platforms alike.

Stablecoin legislation boosts ether demand

A key driver of ether’s recent rally has been the passage of the Genius Act, a law establishing a regulatory framework for dollar-pegged cryptocurrencies known as stablecoins.

The legislation has raised expectations of wider acceptance for these digital assets, pushing up prices across the crypto market. Standard Chartered projects that the stablecoin sector could expand by around eight times by the end of 2028.

Since most stablecoins are issued and traded on the Ethereum blockchain, the anticipated growth is expected to drive up demand for ether to cover transaction fees.

Increased stablecoin activity also highlights Ethereum’s positioning as a backbone for decentralised finance, settlement systems, and tokenised assets.

Staking and network use widen appeal

Unlike bitcoin, which relies solely on price appreciation for returns, ether offers additional yield opportunities through staking. Holders can lock up their tokens to support the Ethereum network and earn rewards in return.

This feature has made ether an increasingly attractive option for investors seeking active returns. Geoff Kendrick, Standard Chartered’s head of digital assets research, noted that Ethereum’s long-term prospects hinge on the Layer 1 blockchain being used for high-value transactions, especially in traditional finance.

Expanding Layer 1 capacity would be key to achieving this goal, with network scalability upgrades potentially unlocking greater institutional adoption.

Long-term forecast set at $25,000

Looking further ahead, Standard Chartered has increased its 2028 year-end forecast for ether from $7,500 to $25,000. Kendrick also suggested that Ethereum treasury companies could eventually hold up to 10% of all ether in circulation.

Such institutional participation, combined with the expected surge in stablecoin activity, could significantly strengthen the Ethereum network’s role in both decentralised finance and mainstream financial markets.

The combination of regulatory progress, staking incentives, and adoption by traditional finance points to Ethereum’s potential to become a core infrastructure layer for the digital economy.

Analysts note that the bank’s forecast, if realised, would place Ethereum among the top-performing global assets of the decade and further solidify its role in financial innovation.