Standard Chartered Predicts Ethereum's Dominance in 2026, Outperforming Bitcoin

Standard Chartered has issued a bullish forecast for Ethereum, predicting that 2026 will be the "year of Ethereum" and that Ether (ETH) will significantly outperform Bitcoin (BTC). The bank's analysis highlights Ethereum's growing role in decentralized finance (DeFi), stablecoin adoption, and the tokenization of real-world assets as key drivers for its projected growth.

Key Takeaways

• Standard Chartered anticipates Ethereum will outperform Bitcoin in 2026.

• The bank forecasts the ETH-BTC price ratio to return to its 2021 highs.

• Key growth drivers include stablecoin and real-world asset adoption, alongside Ethereum scaling upgrades.

• Ethereum holds a dominant position in stablecoins and tokenized assets.

• Despite a revised near-term price target, long-term outlooks remain strong.

Ethereum's Strategic Advantages

Geoffrey Kendrick, Standard Chartered's Global Head of Digital Assets Research, stated that 2026 is expected to mirror Ethereum's strong performance in 2021. This optimism is fueled by Ethereum's established position as the primary platform for stablecoins, with approximately 55% of the total supply, and tokenized assets, accounting for 52% of the market. In contrast, Bitcoin is seen as primarily a store of value, lacking the programmability for a robust DeFi ecosystem.

Catalysts for Outperformance

Several factors are expected to propel Ethereum's growth. These include ongoing scaling upgrades designed to increase network throughput, which historically correlates with market capitalization. The potential passage of regulatory frameworks like the CLARITY Act in the U.S. could further encourage novel DeFi applications and broader adoption. Furthermore, Ethereum's staking yield offers an attractive characteristic for institutional investors seeking active returns, especially as regulatory bodies become more receptive to staking within ETFs.

Revised Price Targets and Outlook

While maintaining a positive outlook on Ethereum's relative performance, Standard Chartered has adjusted its absolute price targets. The bank now projects Ethereum to reach $7,500 by the end of 2026, a reduction from its previous $12,000 forecast. However, longer-term targets have been raised, with projections of $15,000 for 2027 and $22,000 for 2028. The bank has also introduced a new target of $40,000 for 2040, indicating strong confidence in Ethereum's long-term potential.

Market Dynamics and Institutional Interest

The bank notes that capital inflows into digital asset treasuries are more constructive for Ethereum than for Bitcoin. Companies like Bitmine, a significant Ethereum treasury, demonstrate a healthy net asset value multiple, unlike many Bitcoin treasury companies. This suggests a growing institutional appetite for ETH, driven by its utility in DeFi, stablecoins, and the burgeoning tokenization market, which is projected to reach $2 trillion by 2028.

Sources

• Standard Chartered Says '2026 Will Be The Year Of Ethereum' As It Predicts 'ETH Outperformance', Yahoo Finance.

• Why Ethereum Could Be Ready to Outperform Bitcoin in 2026, Yahoo Finance.

• Standard Chartered says '2026 will be the year of Ethereum' as bank backs ETH outperformance, The Block.

• Standard Chartered Calls 2026 ‘Ethereum’s Year’: Will ETH USDT Reclaim $5,000?, Yahoo Finance.

• Standard Chartered lifts Ethereum call to $7,500, arguing institutional demand could leave Bitcoin trailing, Mitrade.