The cryptocurrency market faces new opportunities! Can Ethereum break through in 2026?

During periods of high volatility in the cryptocurrency market, the attitude of traditional financial institutions becomes especially crucial. Geoffrey Kendrick, Head of Global Digital Asset Research at Standard Chartered Bank, recently released an attention-grabbing report. Although he has adjusted his market outlook somewhat, his long-term view on Ethereum (ETH) is more optimistic. He even straightforwardly states that 2026 will be the “turning year for Ethereum,” with expectations that its performance will surpass the average level of the entire cryptocurrency market.

Price targets significantly adjusted, but long-term confidence remains

In the face of the current overall pressure in the cryptocurrency market, Standard Chartered has downgraded its short-term expectations for ETH. According to the latest report, the target price for ETH by the end of 2026 has been revised from an initial estimate of $12,000 to $7,500. Forecasts for the following years have also been lowered, with expectations of $15,000 in 2027 and $22,000 in 2028.

However, looking further ahead, Standard Chartered’s optimism about ETH becomes even more apparent. The report raised the projected price at the end of 2029 to $30,000 and for the first time set a new target of $40,000 by the end of 2030. This “short-term adjustment, long-term increase” strategy reflects Standard Chartered’s deep confidence in Ethereum’s fundamentals.

Why can ETH outperform the cryptocurrency market?

Compared to Bitcoin, Ethereum’s growth momentum is more diverse and robust. Geoffrey Kendrick emphasizes that the driving forces behind ETH’s rise are far more than mere price speculation; they are built on the expansion of real-world applications.

Standard Chartered predicts that the “ETH/BTC exchange rate” will gradually rebound to near the highs of 2021 (around 0.08). This rebound is driven by Ethereum’s unique competitive advantages: its leading position in stablecoins, real-world asset (RWA) tokenization, and DeFi sectors. Currently, Ethereum has become the main platform for these emerging financial activities.

Institutional activity also confirms this trend. The world’s largest ETH reserve company, Bitmine, currently holds 3.4% of the circulating ETH supply and is steadily moving toward a 5% target. This indicates that institutional investors continue to allocate to ETH, despite a slowdown in overall capital inflows into cryptocurrency ETFs.

On-chain data verification: the crypto ecosystem is transforming

From a fundamental perspective, Ethereum is undergoing a profound application transformation. Standard Chartered reiterates that the stablecoin and RWA tokenization markets are expected to reach a $2 trillion scale by 2028, with Ethereum at the core of this financial revolution. Over half of the stablecoin and RWA tokenization activities are already conducted on Ethereum, and as traditional finance accelerates its shift onto the blockchain, this proportion is expected to continue growing.

Actual data strongly supports this view. Benefiting from stablecoin activity (accounting for approximately 35% to 40% of total transaction volume), Ethereum’s recent transaction volume has repeatedly hit record highs. In contrast, overall trading activity in the entire crypto market has been relatively calm.

Standard Chartered emphasizes that increasing the throughput of Layer 1 (mainnet) remains a key driver of ETH’s market capitalization growth. Historical experience repeatedly shows that when network processing capacity improves, it often leads to an expansion in the value of related assets. This is not only a technological advancement but also an important signal of the evolution of the crypto ecosystem.

Regulatory window opening soon, crypto market faces new opportunities

Looking ahead, policy environment improvements could further boost the prospects of the crypto market. Standard Chartered specifically mentions the U.S. “Digital Asset Market Clarity Act,” which is expected to pass in the first quarter of 2026. If the bill is successfully enacted, coupled with the steady performance of the U.S. stock market, Bitcoin could hit new all-time highs again in the first half of the year.

This overall positive trend will also provide a solid market foundation for ETH. As the overall crypto environment improves and ETH has core application scenarios to support it, its performance is likely to stand out among similar assets.

This report from Standard Chartered essentially sketches a new blueprint for the crypto market in 2026: short-term volatility is inevitable, but the long-term trend remains positive; Bitcoin remains the market leader, but ETH is rising as the true application engine. For investors paying attention to the dynamics of the crypto market, this is undoubtedly a signal worth deep consideration.