Ether (ETH), the native token of the Ethereum blockchain, could surge to as high as US$40,000 by the end of the decade, decisively outperforming bitcoin, according to a new long-term forecast by Standard Chartered.
In a research note, the UK-based global bank said Ethereum’s expanding role as the backbone of decentralised finance (DeFi), tokenisation, and on-chain financial infrastructure gives it stronger structural growth potential than bitcoin over the long run.
At current prices, a move to US$40,000 would represent a multi-fold increase for ether and significantly narrow, or even reverse, the valuation gap with bitcoin, which has historically dominated the crypto market.
Why Standard Chartered is bullish on Ether
Standard Chartered analysts pointed to Ethereum’s utility-driven demand, arguing that ETH is increasingly consumed as “digital oil” powering smart contracts, stablecoins, decentralised exchanges, and real-world asset tokenisation.
“Ethereum is evolving into the settlement layer for the digital economy,” the bank said, adding that network activity and fee generation give ether a fundamentally different value proposition from bitcoin, which is primarily viewed as a store of value.
The bank highlighted several long-term catalysts:
- Tokenisation of traditional assets, including bonds, equities, and commodities, largely built on Ethereum-compatible networks
- Continued growth in stablecoins, most of which rely on Ethereum infrastructure
- Expansion of Layer-2 scaling solutions, which increase transaction capacity while still settling on Ethereum’s base layer
- Ethereum’s post-merge monetary structure, which can reduce net ETH supply during periods of high network usage
Bitcoin still dominant — but growth may slow
While Standard Chartered remains constructive on bitcoin, it suggested that BTC’s upside may be more limited relative to Ethereum over the next five years.
Bitcoin, the bank noted, continues to benefit from institutional adoption, spot ETFs, and its status as “digital gold.” However, its lack of native yield and limited programmability could cap its relative performance compared to Ethereum’s broader use cases.
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“Bitcoin will likely remain the benchmark crypto asset,” the note said, “but Ethereum’s cash-flow-like characteristics make it better positioned for sustained outperformance.”
Risks remain
Despite the bullish outlook, Standard Chartered acknowledged risks that could derail Ethereum’s trajectory, including regulatory crackdowns on DeFi, competition from alternative smart-contract blockchains, and potential fragmentation if Layer-2 networks fail to maintain strong alignment with Ethereum’s base layer.
Still, the bank argued that Ethereum’s first-mover advantage, developer dominance, and deep integration into global crypto markets give it a durable edge.
If the forecast proves accurate, Ethereum would not only close the gap with bitcoin but reshape the hierarchy of the digital asset market by the end of the decade.
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