Ether will rise to $7,500 by end of 2025: Standard Chartered

Ether makes it to top charts primarily because of investors inclination towards more active returns
An undated image. — Unsplash
An undated image. — Unsplash

One of the most defining properties of the cryptocurrency market is its innate volatility, but this will not be the case of Ether, the second largest cryptocurrency, as the Standard Chartered has raised its year-end projection for ether to $7,500 from $4,000.

Behind the huge increase in its prediction for Ether's value by the end of 2025, the bank cited improved industry engagement and an uptick in cryptocurrency holdings in recent months.

The new expected rate of Ether signifies an addition of almost 60% over the coin's recent high of $4,700 it achieved on Wednesday.

The cryptocurrency has made it to the top charts primarily because of investors inclination towards more active returns, Reuters reported.

Ether has ascended more than 50% over the past four weeks, driven by the passage of the Genius Act, which aims to establish a regulatory framework for dollar-pegged cryptocurrencies known as stablecoins. 

Geoff Kendrick, Standard Chartered's head of digital assets research, stated: "We project that the stablecoin sector will grow by around eightfold by the end of 2028, which would significantly impact fees on the Ethereum network."

Most stablecoins are issued and transacted on the Ethereum blockchain, increasing demand for Ether to cover transaction fees.

Ethereum's long-term growth depends on using its main blockchain (Layer 1) for high-value transactions, as per Kendrick, particularly those linked to traditional finance.