Three researchers from British multinational banking giant Standard Chartered predict tremendous growth for Ethereum (ETH).
Analysts recently published a report on two major cryptocurrencies – Bitcoin (BTC) and Ethereum. It examined the structural and economic options for using the ether. In the end, all three stated that:
“Structurally, we value Ethereum at $ 26,000- $ 35,000.”
Interestingly, proponents of traditional finance remain positive despite the recent fall in prices. Ethereum dropped almost 20% on Tuesday, after which the altcoin price stabilized in the $ 3300-3500 range.
Alameda Research CEO Sam Trabucco shared his take on the recent drop in ETH prices. He noted that the situation before the correction is almost always the same. Futures contracts initially trade at a high premium, which indicates aggressive buying, followed by a sharp price correction that gives traders time to buy on a dip.
In addition, the drop could have triggered a sharp increase in transaction fees on the Ethereum network. Ethereum founder Vitalik Buterin attributed this to the increase in the number of non-fungible tokens (NFT) on the network. On the Ethereum Research blog, he suggested moving NFT entirely to L2 solutions to address this issue.
Currently, rollouts supporting the Ethereum Virtual Machine (EVM) have backdoors and some degree of centralization. Therefore, until a better solution is found, NFTs must support cross-convolution. NFTs should easily navigate the entire L2 ecosystem until one consolidated package solves the centralization and security concerns. This proposal could spur further growth in L2 scaling solutions.
For this reason, the theoretical concept of flippening, which has not yet been translated into reality, has attracted attention again. The term refers to the belief that altcoin will one day surpass Bitcoin in terms of market capitalization. This will put an end to the dominance of Bitcoin, and its price movement will cease to affect other coins. As Ethereum’s Tier 2 surpassed Bitcoin’s daily transactions, flipping became relevant again.
Despite the correction in Ethereum prices, the massive changes in its ecosystem continue to paint an optimistic picture for many analysts. Standard Chartered researchers are confident that:
“The potential profit for ETH may be greater than that for BTC, although the risks are also higher.”