Standard Chartered Bank: It is expected that Ethereum will significantly outperform the market in 2026, reaching $7,500 by the end of the year

Standard Chartered Bank has issued a positive signal regarding the prospects of Ethereum. Geoffrey Kendrick, the bank's global head of digital asset research, stated that although the recent price forecasts have been lowered amid an overall weak cryptocurrency market, he expects Ethereum to outperform other cryptocurrencies by 2026. "I believe 2026 will be the year of Ethereum, just like 2021," Kendrick wrote in the bank's latest digital asset report.

He pointed out that the growth in the adoption of blockchain and on-chain products will be a key factor driving Ethereum significantly beyond the market. The report noted that Bitcoin's continued dominance in the field has weakened the appreciation prospects of digital assets relative to the dollar due to its underperformance. However, Kendrick emphasized that Ethereum's driving forces are strengthening relative to Bitcoin.

Standard Chartered expects the ETH/BTC exchange rate to gradually return to the high level of around 0.08 seen in 2021, thanks to Ethereum's structural advantages that other cryptocurrencies lack, including its dominance in stablecoins, real-world assets, and decentralized finance, as well as ongoing network expansion efforts.

The bank believes that the planned increase in Ethereum Layer 1 throughput (including measures taken through the Fusaka upgrade last December) is crucial, as historical data shows that higher throughput often translates to higher market capitalization. Additionally, a more favorable regulatory environment may further improve prospects, particularly mentioning the U.S. "Clarity Act," which is expected to pass in the first quarter. If approved, combined with the resilience of the U.S. stock market, it could drive Bitcoin to reach new all-time highs in the first half of the year, a scenario that the bank believes will also support Ethereum's long-term upward trajectory.

This forecast comes as Standard Chartered's stance on Bitcoin and Ethereum diverges—while it has lowered the absolute price targets for Ethereum in the coming years, its outlook on Ethereum is more positive compared to Bitcoin. The bank currently expects Ethereum to reach $7,500 by the end of 2026, down from a previous forecast of $12,000; the targets for 2027 and 2028 have been adjusted to $15,000 and $22,000, respectively, both lower than earlier expectations. However, Standard Chartered has raised its long-term outlook, increasing the 2029 end-of-year forecast to $30,000 and adding a new target of $40,000 by the end of 2030.