Analyst Geoff Kendrick explains his super bullish view on Ether.
He expects Ethereum to reclaim its dominance in smart contracts.
Kendrick also sees new uses cases as catalyst for price appreciation.
Ether has been in a downtrend over the past three months but a Standard Chartered analyst remains super bullish on the cryptocurrency.
The bull case for Ether
Geoff Kendrick expects Ether to hit $8,000 by the end of 2026 that translates to a whopping 5x growth in about three years.
The analyst is convinced that Ethereum will reclaim its dominance in smart contracts. New use cases, he added in a research note this morning, will also help drive its price up moving forward.
Layer 2 scaling solutions … are likely to grow in importance over time. This should help in … increasing its [EHT’s] P/E ratio over the next couple of years.
Earlier this month, Grayscale filed with the Securities & Exchange Commission to convert its Ethereum trust – the largest Ether investment vehicle in the world to a Spot ETH exchange-traded fund.
Layer 2 could help its PE ratio
Layer 2 solutions are built on Ethereum for efficiency.
The likes of Arbitrum and Optimism also help with preventing transactions from spilling over to a competing network – which should eventually deliver a boost to the token’s price-to-earnings ratio, as per Geoff Kendrick.
Ethereum’s established dominance in smart contract platforms, [and] emerging uses in gaming and tokenization, has the potential to push ETH to $8,000.
Interestingly, the Standard Chartered analyst said the cryptocurrency could even be worth $26,000 to $35,000 eventually but that valuation assumes revenue streams and use cases that are yet to materialise.
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