A Superior World Bank, Standard Charterd, has considerably reduced its Ethereum (ETH) price forecasts for 2025, which reduced it from $ 10,000 to only $ 4,000. The bank indicates the main problems of the Ethereum ecosystem, in particular the 2 layer networks as a base, which distance the value of the main network of Ethereum. This clear demotion arises when Ethereum struggles, its price lowering heavily this year.
Ethereum price objective is reduced by 60%
At the beginning of the year, Standard Charterd was optimistic about Ethereum, providing that it could reach $ 10,000 by the end of 2025. Meanwhile, Standard Chartered Bank A has abandoned its target of Ethereum price at only $ 4,000. Indeed, this decision saw the bank repress the projection by 60%, falling from its previous $ 10,000.
However, Ethereum’s performance was low, losing more than 45% of its value this year. Compared to Bitcoin, ETH has dropped 35% since January and 13% in March.
One of the main reasons for this sub-performance is the rise in layer solutions. These networks, such as the base, deal with many transactions that would have taken place otherwise on Ethereum’s main blockchain.
Standard Charterd argues that these layers-2 retain a large part of the transaction costs without giving a lot to the Ethereum ecosystem. This change led to a drop in the economic force of Ethereum.
Possible solutions for the fall of Eth
Standard Charterd suggests that Ethereum could lose even more market share if no measure is taken. An idea is to introduce a tax on layer 2 networks which keep too much profit without reinvesting in the Ethereum ecosystem.
This would be similar to the way some countries tax foreign companies that extract resources without benefiting from the local economy.
The bank also provides that the value of Ethereum compared to Bitcoin will continue to drop, the ETH / BTC ratio can be dropped to 0.015 by 2027. If this would happen, it would be the lowest of Ethereum against Bitcoin since 2017.
Can Ethereum recover?
While Ethereum is faced with challenges, it always has a strong position on the cryptography market. From now on, Eth Price is Exchange about $ 1910 Reflecting a drop of almost 5% in one week with a market capitalization reaching $ 230 billion.