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Price of Ethereum To Grow Over 900%, According to Financial Giant Standard Chartered – Here’s Why

Price of Ethereum To Grow Over 900%, According to Financial Giant Standard Chartered – Here’s Why

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Source: Daily Hodle

Price of Ethereum To Grow Over 900%, According to Financial Giant Standard Chartered – Here’s Why

Financial services giant Standard Chartered has revealed a staggering estimate of Ethereum’s potential valuation.

In a new report titled “Ethereum Investor Guide,” the $781 billion firm prices Ethereum (ETH) somewhere between $26,000 and $35,000 per token, which is more than 900% above its current level.

 

“A range of USD 26,000-35,000 may appear high compared to the current ETH price (just below USD 4,000), but we think the current price reflects both the relative complexity of ETH (versus BTC), and the uncertainty around ETH’s development. In other words, while potential returns may be greater than for BTC, risks are also higher.”

The British banking behemoth also indicates the need for Bitcoin to perform well as a key condition for Ethereum to reach its predicted valuation.

“For this valuation range to be attainable, we assume that BTC would also need to trade towards the upper end of its valuation range (which we estimate at USD 175,000). If the dominant crypto asset (BTC) trades well, we think this will benefit investor perceptions of other crypto assets.”

Standard Chartered says that to evaluate Bitcoin, they compare the total transaction values of all credit card companies to the market cap of BTC, assuming that the leading digital asset “becomes to crypto what cash is to global finance.” The firm then uses a similar method to calculate their Ethereum valuation.

“Extending this analogy to Ethereum, ETH is the global banking system for crypto – i.e, it is the infrastructure that enables dApps/DeFi, in the same way that the banking system enables non-linear finance involving complex transactions.”

Last week, macro guru and former Goldman Sachs executive Raoul Pal said Ethereum trading north of $20,000 felt like a reasonable valuation.

“My price prediction has been ETH north of $20,000, and that’s pretty simple. All I did is just map over the ETH chart to the Bitcoin 2017 chart. They work perfectly, and it gives you $20,000. There’s no great science to that, but it feels about right.”

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Featured Image: Shutterstock/Dai Mar Tamarack

The post Price of Ethereum To Grow Over 900%, According to Financial Giant Standard Chartered – Here’s Why appeared first on The Daily Hodl.

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Author: Daily Hodl Staff