Ethereum Could Hit $40,000 And Beat Bitcoin, | Crypto News
Standard Chartered’s Global Head of Digital Assets Research Geoffrey Kendrick said Ethereum may climb to $40,000 by 2030 and outperform Bitcoin along the way in which, arguing that the next wave of tokenization, stablecoin growth, and institutional blockchain buildout is probably going to land first on Ethereum.
Speaking in a Milk Road interview with John Gillen, Kendrick tied his ETH thesis instantly to how conventional finance is approaching on-chain infrastructure. His argument was not that Ethereum wins because of narrative momentum, but because it appears just like the most secure place for banks, asset managers, and large establishments to start building.
Why Ethereum Could Outperform Bitcoin
Back in January, Kendrick had printed a report titled Ethereum outperformance anticipated. In the interview, he acknowledged that ETH has struggled on price since then, but said the underlying setup stays intact. “The interesting part here for Ethereum is as tradfi gets involved, tradfi is okay to build stuff on Ethereum,” he said. “It’ll be very safe to say I’m going to build on Ethereum layer one, right? Because it’s never gone down. So I think a lot of this stuff in its first instance happens on Ethereum layer 1.”
He pointed to BlackRock’s rollout strategy as a model for how that adoption may unfold. In Kendrick’s view, establishments are probably to launch first on Ethereum mainnet, then broaden to other chains and layer-2s later. That sequencing issues, because he sees exercise flowing to the community before worth disperses elsewhere.
Kendrick said he more and more views protocol and software charges relative to market cap as one of the more useful methods to suppose about ETH valuation. More exercise in the Ethereum ecosystem, he argued, ought to translate into a greater token price. “I think that means ETH outperforms now, let’s say for the foreseeable actually,” he said. He added that the ETH/BTC ratio, at present around 0.03 by his framing, may rise to 0.04 this 12 months. Longer time period, he said, “I’ve got $500,000 Bitcoin by 2030 and $40,000 Ethereum by 2030. So, a massive outperformance, obviously, a massive absolute potential upside from here.”
The broader engine behind that call is tokenization. Kendrick said stablecoins may rise from roughly $300 billion today to $2 trillion over the next few years, and argued that this would create knock-on demand for tokenized money market funds. Corporate treasurers, he said, is not going to need to maintain only tokenized money if the remaining of their idle capital stays trapped in slower off-chain systems.
“Tomorrow, if you want to get access to stablecoins because of their 24/7 instantaneous, near-free benefits, you want to take all the million dollars onchain,” Kendrick said. “You don’t want to go out of stable coins and back into idiotic fiat, which is ridiculously slow by comparison. Rather, you’d like to have all of your off-chain money market funds onchain as well.”
That leads to one of his larger numerical calls. Tokenized money market funds, which he said are about $10 billion today, may attain $750 billion by the end of 2028. He based that on the belief that even if only 10% of transactions transfer into stablecoins over the next few years, a related share of money market fund publicity would probably need to come on-chain too. He also forecast that other tokenized belongings may grow from around $40 billion today to $2 trillion by the end of 2028, describing that as a 50x transfer in three years.
From there, Kendrick sees a path into DeFi. If regulatory readability improves, he said, conventional finance and DeFi may start assembly in the center, with consumer-facing apps utilizing blockchain rails in the background to route money into merchandise like Aave, Morpho, or Compound. “There’s a huge financial fairness and financial inclusion stuff that I think we circle back to from DeFi,” he said. “Most people won’t know where it’s coming from, but you’ll get that style of stuff, I think, in the next few years.”
For Kendrick, that is the core of the Ethereum commerce. If tokenized {dollars}, tokenized funds, and finally tokenized equities pull institutional liquidity on-chain, the first section of that buildout is probably going to occur where compliance groups are most comfy. In his telling, that still factors to Ethereum.
At press time, ETH traded at $2,059.
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