ETH long-term target lowered to $250,000
Etherealize, Ethereum’s institutional advocacy organization, on April 21 released a report that set a long-term price target for Ethereum (ETH) at $250,000 per token.
The first thing that can be noticed from the report is that this target is a significant reduction from the company’s previous target last year, set at $740,000.
The present $250,000 target is based on the theoretical price at which ETH captures the current total currency premium for gold and Bitcoin at about $31 trillion combined. Based on the present supply of ETH circulating at 121 million tokens, it is claimed that price will be more than $250,000 per ETH.
ETH Is Next Candidate to BTC, says Co-Founder
Vivek Raman, Ethereum co-founder, argues, “Ethereum will be the foundation of the global financial system, and the digital assets that will be stores of value will be limited to one or two types, and if Bitcoin is the default route, ETH is the next candidate.”
Etherealize distinguishes ETH from other monetary assets because ETH generates staking rewards of 2-4% per year in exchange for maintaining proof-of-stake (PoS) blockchain security. While it is “capital that does not generate profits even if held by gold and Bitcoin,” the report sets ETH as “the first monetary asset in history that can be compounded without counterparty risk.”
Moreover, Ethereum has a way to do away with a partof transaction fees. The annual supply growth rate is also capped at 1.5%.
Institutional Price Predictions and Viewpoints on Competitor Chains
The price predictions for ETH at the end of 2026 by major institutions vary widely. Standard Chartered Bank initially forecasted the price at $7,500 but revised it lower at $4,000 in February. Citigroup, on its part, estimated the price at $3,175, while Van Eck set it at $6,000. Bernstein estimated the year-end price at $5,500.
Also, Fundstrut and Bitmine’s Tom Lee maintains a bullish outlook at $7,000-$9,000. The forecasts of the companies are in the $4,000-7,500 range.
Competing Blockchains
Regarding competing blockchains, Raman mentioned that “alternative L1s such as Canton, Tempo, and Solana are only competing with Ethereum’s L2, not with the monetary status of ETH itself.” On the other hand, Raman said that issues surrounding security budgets could be a potential risk if all 21 million BTC are mined and the only reward given to miners is transaction fees.
What Is Needed for the Target to Be Realized
There is no mention in the report when the target of $250,000 will be achieved. To achieve more than 100 times the current ETH price, at about $2,300, real demand needs to be expanded through DeFi, stablecoins, and real asset tokenization, while institutional investors need to flow into funds via ETFs.
It is worth pointing out that the trend of Ethereum’s network fee income and token burn pace are attracting attention as proof of the monetary premium acquisition scenario.
