Standard Chartered has drastically reduced its 2025 Ether price prediction from $10,000 to $4,000 due to the growing dominance of Ethereum Layer 2s, particularly Base.
Analyst Geoffrey Kendrick argues these Layer 2s are extracting “super-profits,” hurting Ethereum’s mainnet economy and market capitalization.
He suggests taxing these profits but deems it unlikely. Recent Ethereum upgrades have unintentionally contributed to this issue. While Ethereum maintains dominance in some areas, its market share is declining.
Kendrick forecasts Ether to reach $7,500 by 2028-2029 but expects it to underperform Bitcoin unless Ethereum implements significant reforms.
Despite recent setbacks, Ethereum still has the potential to double in value this year. Currently, ETH trades at $1,911, following a 5% drop in the past week, per CoinGecko data.
However, Ethereum continues to underperform Bitcoin, with the ETH/BTC pair hitting 0.023 BTC, its lowest level since 2017. Since peaking at 0.088 BTC in December 2021, ETH has lost 75% of its value against BTC.
Meanwhile, Standard Chartered predicts Bitcoin could surge to $200,000 this year and reach $500,000 long-term, further cementing Bitcoin’s dominance over Ethereum. With layer-2 growth and shifting market trends, Ethereum faces an uncertain recovery, while Bitcoin’s momentum continues to build.
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