Ethereum News Today: Standard Chartered Forecasts Ethereum to Hit $4,000 as Corporate Buying Drives 51% Rally, Surpassing Bitcoin's 13% Gain

Banking giant Standard Chartered Plc has forecast that Ethereum (ETH) prices could surpass $4,000 this year, driven by sustained corporate demand for the cryptocurrency. Geoffrey Kendrick, the bank’s head of digital assets research, attributes this shift to rising institutional interest, particularly from public companies accumulating Ether on their balance sheets. According to Kendrick, these firms are projected to hold 10% of all circulating ETH—up from the current 1%—as more corporations adopt the asset for treasury allocations [1]. This trend has already contributed to a 51% rally in ETH prices since June 2025, outperforming Bitcoin’s 13% and Solana’s 17% gains over the same period [2].

The bank’s analysis highlights several factors underpinning the bullish outlook. Regulatory developments, such as U.S. stablecoin legislation, have bolstered confidence in Ethereum’s infrastructure, with over 50% of stablecoins and tokenized financial assets built on its network [2]. Institutional investors are also flocking to Ethereum via spot ETFs, with Ether funds capturing 84% of the $1.9 billion inflow into crypto ETFs last week [2]. However, Standard Chartered notes that corporate treasuries offer distinct advantages over ETFs. Unlike U.S. Ether funds, which are restricted from staking, public companies can stake their holdings to earn yields of approximately 3%. For example, SharpLink, an online gaming firm co-chaired by Ethereum co-founder Joe Lubin, has staked 99.7% of its $425 million ETH holdings [2].

To support its thesis, Standard Chartered recently launched spot trading services for Bitcoin and Ethereum through its UK subsidiary, enabling institutional clients to buy and sell the underlying assets directly [1]. This move follows the bank’s earlier investments in digital asset infrastructure via firms like Zodia Custody. Kendrick described the new offering as a direct response to growing demand for regulated market access, citing a KPMG report indicating that 91% of hedge funds are either invested in or plan to invest in digital assets within five years [1]. The bank’s action underscores a broader shift toward spot trading, moving beyond futures-based products to cater to institutional preferences for direct exposure.

Market data aligns with the bank’s projections. Ethereum traded at $3,850.88 as of the latest report, down 0.47% in 24 hours, but its 24-hour trading volume surged 19.33% to $37.34 billion [1]. The asset’s market capitalization stood at $464.84 billion, with a volume-to-market cap ratio of 8.07%, reflecting heightened activity. While Bitcoin experienced a 0.6% decline, Ethereum’s open interest in derivatives reached a two-year high, signaling sustained bullish sentiment [3]. Analysts attribute this momentum to a combination of corporate buying, regulatory clarity, and Ethereum’s role as a foundational layer for decentralized finance (DeFi), where total value locked (TVL) recently hit a three-year high of $153 billion [4].

Standard Chartered’s $4,000 target diverges from broader cryptocurrency forecasts, such as Bitcoin’s $200,000 projection by 2025. The bank emphasizes Ethereum’s unique utility in DeFi and staking mechanisms as key differentiators [5]. While the prediction is speculative, it is grounded in observable trends, including the rapid growth of corporate treasuries and regulatory tailwinds.

Source: [1] Standard Chartered Sees Corporate Buys Driving ETH Past $4,000 (https://coinedition.com/standard-chartered-sees-corporate-buys-driving-eth-past-4000/)

[2] How public companies could end up holding 10% of all... (https://finance.yahoo.com/news/public-companies-could-end-holding-164459699.html)

[3] Ethereum open interest hits 2-year peak in dominance as... (https://www.mitrade.com/au/insights/news/live-news/article-3-994379-20250729)

[4] DeFi Sector TVL Hits 3-Year High of $153B as Investors... (https://www.coindesk.com/business/2025/07/28/defi-sector-hits-3-year-high-in-tvl-as-investors-rush-to-farm-yields)

[5] 2 Stocks, 2 Cryptos & 2 Precious Metals You Should Own (https://investinghaven.com/crypto-blockchain/2stocks2cryptos-2precious-metals-you-should-own-and-why/)