Standard Chartered Bullish On Ethereum. Predicting It To Soar Upto $26k

KEYPOINTS

  • Ethereum is valued fundamentally between $26,000 to $35,000 by Standard Chartered bank experts, who have an optimistic outlook on the altcoin.
  • Vitalik Buterin suggests a remedy to the Ethereum network’s excessive gas prices, recommending that NFTs be moved fully to layer 2.
  • The amount of transactions on Ethereum layer 2 has overtaken that of Bitcoin, the flippening storey is once again important.

With the rise in Ethereum gas prices, more people are adopting layer-2 scaling techniques. The number of transactions processed by ETH layer-2 protocols each day exceeds that of Bitcoin.

Standard Chartered, a London-based international banking conglomerate, recently released a research on the two most popular cryptocurrencies, Bitcoin and Ethereum. Three Standard Chartered Bank researchers feel that:

“While potential returns may be greater for ETH than for BTC, risks are also higher.

Structurally, we value Ethereum at $26,000-$35,000.” —THe analyst said

The CEO of Alameda Research, Sam Trabucco, expressed his thoughts on the recent drop in Ethereum pricing. The setup pre-correction is roughly the same every time, according to Trabucco.

A high premium is paid for futures contracts, signalling aggressive buying. A steep price correction follows this setup, providing traders with the opportunity to purchase the dip.

The high spike in transaction costs on the Ethereum network is another factor that is likely to have sparked the drop.

THE LAYER-2 SCALING METHOD

Vitalik Buterin, the company’s founder, linked this to the emergence of non-fungible tokens (NFTs) on the Ethereum blockchain, and offered a few methods to address the problem. To address excessive gas expenses, Vitalik Buterin proposes switching NFTs entirely to layer-two solutions.

On the Ethereum Research blog, Buterin advocated that non-fungible tokens be relegated to scaling solutions entirely.

He wrote a tweet and attached a file regarding his new project “cross-rollup NFT” which will further be operated on layer-2 ecosystem.

This means that NFTs should be able to roam freely throughout the whole layer-2 ecosystem until a single rollup addresses the issue of centralization and security concerns.

Buterin’s ideas have triggered a new round of discussion in the crypto world. Layer-2 scaling solutions, on the other hand, have gained new growth opportunities as a result of this.

Week In Ethereum News founder, Evan Van Ness tweeted about the growing number of transactions on Ethereum layer-2 solutions, which now outnumber Bitcoin in terms of trade volume.

With the Ethereum layer-2 ecosystem surpassing daily transactions, the idea of flipping the Bitcoin network has resurfaced.

Despite the price drop, improvements in the Ethereum ecosystem are causing a bullish perspective on the altcoin’s price.

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