Standard Chartered, the global bank, has made a bold prediction regarding Ethereum (Ether), the second-largest cryptocurrency. They suggest that Ether’s value may increase more than five-fold by the end of 2026. As of Wednesday, Ether was trading at approximately $1,575.

Standard Chartered’s Head of FX Research, West, Geoff Kendrick, outlined the factors contributing to this anticipated growth. He believes that Ethereum could reach $8,000 within the next two years due to its expanding use in blockchain-based smart contracts. These smart contracts enable automated, secure, and transparent agreements on the blockchain, making them increasingly valuable.

Moreover, Ethereum is finding applications in the world of gaming, where non-fungible tokens (NFTs) and blockchain technology are transforming the industry. NFTs are unique digital assets that can represent in-game items, collectibles, and more. Additionally, Ethereum plays a pivotal role in the “tokenization” of traditional assets, converting physical assets like real estate or art into digital tokens on the blockchain.

Valuing cryptocurrencies such as Ether is a complex task. Unlike traditional assets like stocks, bonds, or currencies, cryptocurrencies lack underlying assets to provide tangible value. Instead, the prices of cryptocurrencies are primarily influenced by investor sentiment and demand.

Kendrick emphasized the long-term perspective of Standard Chartered’s forecast. He envisions a “structural” valuation estimate for Ethereum in the range of $26,000 to $35,000 by 2040. This projection is based on the expectation of emerging use cases and revenue streams that may not have fully materialized at this time. The real-world applications of Ethereum in gaming and asset tokenization are anticipated to support its continued development.

In the current year, Ethereum has demonstrated solid performance, with a 30% gain in value. However, it remains approximately 70% below its all-time high, which was around $4,869, achieved in November 2021. Despite this gap, the cryptocurrency continues to garner attention and investment.

This isn’t the first time that Standard Chartered has made optimistic predictions in the cryptocurrency space. In July, the bank forecasted that Bitcoin, the leading cryptocurrency, could reach $50,000 by the end of this year and potentially surge to $120,000 by the conclusion of 2024. As of the latest data, Bitcoin was trading at around $27,275.

Standard Chartered’s positive outlook for Ethereum is part of the growing recognition of the cryptocurrency’s potential, particularly in blockchain applications, and the belief in its sustained growth and broader adoption in various sectors.