Standard Chartered Sees Ethereum Taking the Lead Among Digital Assets in 2026

Standard Chartered has expressed cautious optimism about Ethereum’s price prospects, despite lowering some of its short-term forecasts amid the general weakness in cryptocurrency markets. Jeffrey Kendrick, the bank’s Head of Global Digital Asset Research, stated that Ethereum is well-positioned to outperform its peers in 2026, citing the network’s continued strong fundamentals.

In a note accompanying the bank’s latest digital asset report, Kendrick remarked, “I believe 2026 will be the year of Ethereum, just as 2021 was.” He explained that the growing adoption of blockchain technology and its associated products remains a key driver, potentially giving Ethereum a significant advantage in the coming period.

This optimism emerges as Standard Chartered has become more favorable toward Ethereum compared to Bitcoin, even though it has lowered its absolute price targets for Ethereum over the next few years. The report forecasts Ethereum reaching approximately $7,500 by the end of 2026, down from a previous estimate of $12,000. It further projects prices of $15,000 in 2027 and $22,000 in 2028, both lower than prior projections. Conversely, the bank raised its long-term targets to $30,000 by the end of 2029 and $40,000 by the end of 2030. Part of this revision reflects Bitcoin’s weaker-than-expected performance, which has negatively affected the outlook for digital assets against the US dollar, given Bitcoin’s greater market dominance. Nevertheless, Kendrick emphasized that Ethereum’s growth drivers are relatively stronger than Bitcoin’s, improving its prospects for regaining momentum.

In this context, Standard Chartered expects the Ethereum-to-Bitcoin ratio to gradually return to its 2021 high of around 0.08. This expectation is grounded in Ethereum’s structural advantages, which many other cryptocurrencies lack. These include its dominant role in stablecoins, digital assets, and decentralized finance (DeFi), alongside ongoing efforts to scale and enhance network efficiency.

The Kendrick team also observed that, while investment flows into digital asset exchanges (ETFs) and institutional treasury instruments have generally slowed, Ethereum continues to be favored over Bitcoin. The report highlighted BitMine Immersion—the largest digital asset treasury focused on Ethereum—which currently holds roughly 3.4% of total circulating Ethereum and remains on track to reach its target of a 5% share.

Meanwhile, Standard Chartered reiterated its positive outlook on stablecoins and digital assets, predicting that their combined market size could reach approximately $2 trillion by 2028. The bank anticipates that the majority of this activity will concentrate on the Ethereum network, noting that over half of all risk-weighted stablecoins and digital assets already operate on it—a figure expected to rise as traditional financial activities increasingly migrate to blockchain.

Ethereum’s network fundamentals further support this optimism. Transaction volumes recently reached record highs, primarily driven by stablecoin activity, which now accounts for 35–40% of total network transactions. In addition, planned increases in Ethereum’s Layer 1 throughput, including updates implemented under the FOSKA upgrade in December, are critical for the network’s trajectory. Higher data transfer rates have historically correlated with increased market capitalization, underscoring the importance of these upgrades for medium- and long-term growth.

Standard Chartered runs a biannual network upgrade program aimed at expanding Ethereum’s reach and transforming it into a trillion-dollar digital ecosystem. Alongside technological developments, the regulatory environment plays a complementary role in supporting these expectations. In particular, the bank highlighted the proposed US Transparency Act, expected to pass in the first quarter. According to the report, this legislation, coupled with a strong US stock market, could push Bitcoin to new record highs in the first half of the year.

While this scenario primarily concerns Bitcoin, the bank believes it will also positively impact Ethereum’s long-term growth. The close correlation between broader market performance and the development of Ethereum’s infrastructure suggests that Ethereum could benefit alongside the wider digital asset ecosystem.