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Citigroup Forecasts Ethereum Price to Fall to $4,300 by Year-End

Citigroup has released a new forecast predicting Ethereum's price will decline to $4,300 by the end of the year. This projection is part of a broader analysis that includes an optimistic scenario of $6,400 and a pessimistic one of $2,200. The bank highlights that while network activity is crucial for Ethereum's valuation, much of the recent growth has been on second-layer networks, with only 30% of this activity expected to impact Ethereum's value directly. Citi analysts note that the current Ethereum price exceeds their activity-based model predictions, likely due to strong capital inflows and market enthusiasm driven by tokenization and stablecoins. However, they caution that Ethereum's relatively small market cap and limited popularity among new investors may restrict further capital inflows. Additionally, macroeconomic factors are expected to offer limited support, with the S&P 500 nearing Citi's target of 6,600 points, suggesting limited upside for risk assets.

Standard Chartered Predicts Ethereum to Outperform Bitcoin and Solana

Standard Chartered's Head of Digital Asset Research, Geoffrey Kendrick, forecasts that Ethereum will benefit more from public companies' digital asset reserves (DATs) than Bitcoin or Solana. Kendrick highlights that Ethereum's ability to generate staking income and its maturity give it a competitive edge. Currently, DATs hold 4% of Bitcoin, 3.1% of Ethereum, and 0.8% of Solana. He suggests that market saturation has led to valuation compression, but DATs still offer selective investment value, especially in restricted regions. Kendrick anticipates that Ethereum's staking income and maturity will drive its outperformance, potentially leading to strategic acquisitions in the sector.

Standard Chartered Warns of Valuation Crisis in Digital Asset Treasury Firms

Standard Chartered has issued a warning about a widespread collapse in the market net asset value (mNAV) of digital asset treasury (DAT) companies, affecting firms associated with Bitcoin, Ethereum, and Solana. The bank highlights that many well-known DATs have fallen below critical levels, potentially leading to industry consolidation. Larger, low-cost companies with staking yields, such as Strategy (MSTR) and Bitmine (BMNR), are expected to have an advantage. Standard Chartered anticipates that major companies may expand by acquiring discounted peers, while many small to medium-sized treasury firms could face a "death spiral." This development suggests a significant shake-up in the digital asset treasury sector, with weaker companies at risk of being eliminated.