- 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.
Credit: Source link