Standard Chartered Predicts Ethereum Will Reach $40,000 by 2030, Outpacing Bitcoin Amidst Growing Onchain Finance Adoption

Ethereum Set to Surge: Standard Chartered Predicts $40,000 by 2030

In a bold forecast, Standard Chartered has predicted that Ethereum, the second-largest cryptocurrency by market capitalization, will soar to $40,000 by 2030, outpacing Bitcoin in the process. The British multinational bank’s insights, published in a research note on January 12, suggest that a combination of factors, including increased adoption of on-chain finance, will fuel this anticipated rally.

Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, stated, “2026 will be the year of Ethereum, much like 2021 was.” He believes that Ethereum’s prospects are improving relative to Bitcoin, potentially restoring the price ratio between the two assets to its 2021 highs. Back then, one Ether token was valued at approximately 8% of a Bitcoin, but the ratio has since dropped to around 3%. If the ratio were to rise to 16%, the two cryptocurrencies would trade at equal market values.

The Rise of On-Chain Finance

Standard Chartered’s prediction underscores a growing bullish sentiment among traditional financial institutions regarding stablecoins and the tokenization of real-world assets, such as stocks and real estate, on blockchain platforms. Ethereum currently leads the charge in this arena, hosting over $10 billion worth of tokenized assets and the majority of stablecoins, which are often backed by U.S. Treasury bonds.

The bank asserts that Ethereum is well-positioned to capitalize on the increasing interest in on-chain finance, especially as Bitcoin lacks the infrastructure for programmable smart contracts, resulting in a significantly smaller on-chain ecosystem.

A Bright Future for Ethereum ETFs

While on-chain finance is a key driver for Ethereum’s potential growth, Standard Chartered also notes that investment through exchange-traded funds (ETFs) is less critical for Ethereum’s price performance compared to Bitcoin. Despite recent outflows—over $1.9 billion from Ethereum ETFs and $4.6 billion from Bitcoin ETFs—Kendrick believes the current ETF landscape is more favorable for Ethereum.

Moreover, Ethereum developers are working on enhancing the blockchain’s transaction throughput by tenfold over the next two to three years, which could provide a substantial boost to its performance.

Regulatory Clarity on the Horizon

The anticipated passage of the U.S. Clarity Act, a proposed regulatory framework for the crypto market, is another factor that could benefit Ethereum. If enacted, this legislation would provide a comprehensive structure for decentralized finance, instilling greater confidence among traditional financial firms to integrate blockchain technology into their offerings. Standard Chartered expects the Clarity Act to be passed by the first quarter of 2026.

Bitcoin Still in the Game

While the bank is optimistic about Ethereum’s future, it remains bullish on Bitcoin as well, reiterating its price prediction of $500,000 by 2030. However, it has adjusted its near-term price targets for Ethereum, lowering them from $12,000 to $7,500 for 2026 and from $18,000 to $15,000 for 2027.

Kendrick concluded, “We expect the Clarity Act passage, along with solid U.S. equity-market performance, to push BTC to a fresh all-time high in H1, defying fears of further price declines at this stage of the Bitcoin ‘halving’ cycle.”

As the crypto landscape evolves, all eyes will be on Ethereum to see if it can indeed fulfill Standard Chartered’s ambitious predictions.