Standard Chartered expects Ethereum (ETH) to significantly outperform the broader digital asset market in 2026, calling it “the year of Ethereum” as real-world blockchain use cases gain traction and network fundamentals strengthen.
In a note sent to Yellow.com, Geoffrey Kendrick, head of digital assets research at Standard Chartered, said Ethereum’s outlook has improved materially in relative terms, even as weaker-than-expected Bitcoin performance has weighed on the sector overall.
“I think 2026 will be the year of Ethereum, much like 2021 was,” Kendrick wrote, pointing to growing adoption of stablecoins, real-world assets and decentralized finance, areas where Ethereum remains the dominant settlement layer.
ETH-BTC Expected To Return To Cycle Highs
Standard Chartered said it expects the ETH-BTC ratio to gradually return to its 2021 highs, driven by Ethereum-specific catalysts rather than broad market momentum.
While slower inflows into crypto exchange-traded products and digital asset treasury vehicles have affected all major tokens, the bank noted that continued buying by BMNR, the largest Ethereum-focused digital asset treasury company, gives ETH a relative advantage.
The bank also cited Ethereum’s central role in stablecoins, tokenized assets and DeFi, sectors it described as structurally bullish over the medium term.
According to Standard Chartered, these applications represent the most tangible real-world uses of blockchain technology and are increasingly shaping institutional engagement with crypto.
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Network Upgrades Support Long-Term Valuation
Another driver highlighted in the report is Ethereum’s ongoing effort to increase layer-1 throughput by roughly tenfold.
Standard Chartered said its internal analysis shows a positive relationship between higher transaction capacity and network market capitalization, supporting the case for ETH outperformance over time.
The bank added that regulatory clarity in the United States could further strengthen Ethereum’s position.
Passage of the CLARITY Act, which would establish a clearer regulatory framework for digital assets and decentralized finance, could unlock additional activity on Ethereum-based protocols.
The U.S. Senate is scheduled to review the bill on January 15, with potential passage expected in the first quarter.
Long-Term Targets Remain Elevated
Despite its relative optimism on Ethereum, Standard Chartered lowered its ETH-USD price forecasts for 2026 through 2028, reflecting broader weakness tied to Bitcoin’s performance.
However, the bank raised its longer-term outlook, projecting Ethereum could reach $40,000 by the end of 2030.
The report frames 2026 as a year in which Ethereum’s fundamentals rather than speculative momentum drive performance, marking a shift from Bitcoin-led cycles toward application-driven valuation within the crypto market.
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