FILE PHOTO: Representation of Ethereum, with its native cryptocurrency ether, is seen in this illustration taken November 29, 2021. REUTERS/Dado Ruvic/Illustration
LONDON (Reuters) - Ether, the second-largest cryptocurrency, may rise more than five-fold in value by the end of 2026, according to global bank Standard Chartered, its latest prediction of rocketing crypto prices.
Ether may hit $8,000 over the next two years as it becomes more widely used in blockchain-based covenants known as "smart contracts," as well as gaming and the "tokenisation" of traditional assets, StanChart Head of FX Research, West, Geoff Kendrick wrote.
Ether was trading on Wednesday at about $1,575.
Assessing the value of cryptocurrencies is fraught with difficulty, as tokens such as ether or bitcoin that are not backed by traditional assets lack the gauges used to price stocks, bonds or currencies. The price of crypto tokens are generally driven by the sentiment of investors.
"We see the $8,000 level as a stepping stone to our long-term 'structural' valuation estimate of $26,000-$35,000," wrote Kendrick, who also heads the bank's digital assets research.
"That valuation assumes future use cases and revenue streams that may not have emerged yet, although the real-world use cases of gaming and tokenisation should support their development."
Kendrick told Reuters that the structural valuation estimate was "very long term, say 2040."
Ether has gained some 30% this year, though remains almost 70% below its all-time high of about $4,869, hit in Nov. 2021.
StanChart said in July that top crypto token bitcoin could reach $50,000 this year and $120,000 by the end of 2024. Bitcoin was last trading at around $27,275.
(Reporting by Tom Wilson and Elizabeth Howcroft, Editing by Louise Heavens)
