According to the bank’s analysts, this adjustment reflects the impact of Layer 2 solutions, particularly Coinbase’s Base network, which has reportedly reduced Ethereum’s market capitalization by an estimated $50 billion by diverting revenue away from the main Ethereum network. Layer 2 networks like Base were designed to enhance Ethereum’s scalability by lowering transaction fees and easing congestion, but Standard Chartered’s research suggests these solutions are eroding Ethereum’s dominance, with profits flowing to platforms like Coinbase, potentially shrinking Ethereum’s market share. Stay informed on crypto price forecasts with
Crypto Market Insights on news.thecoininfo.com, and explore in-depth analysis on The Coin Info Hub at thecoininfo.com.💥BREAKING:
STANDARD CHARTERED CUT ITS YEAR-END 2025 $ETH TARGET FROM $10K TO $4K.
THEY EXPECT $500K FOR BITCOIN… pic.twitter.com/zjCoRBHJEB
— Crypto Rover (@rovercrc) March 17, 2025
The bank acknowledges Ethereum’s potential for price growth from its current $1,900 level, particularly if Bitcoin surges, but warns of sustained underperformance in the medium term. For crypto investors, this revision signals caution, but Ethereum’s long-term value depends on ecosystem innovation, regulatory clarity, and competition from Layer 2 networks, with resources like
Crypto News Updates on news.thecoininfo.com keeping you updated on this pivotal shift.
