A UK-based financial services company is well-known for its cryptocurrency predictions. With over $14 billion in revenue, this long-standing institution has recently updated its forecasts for cryptocurrency prices. What changes have been made to the altcoin price predictions for 2025?

Revised 2025 Altcoin Price Predictions

Geoffrey Kendrick, the global head of cryptocurrency asset research, has revised his predictions for Ethereum

$1,939. In his latest report titled “Ethereum – Midlife Crisis,” he highlights how layer 2 solutions are generating massive gains for the Ethereum ecosystem. Kendrick noted that Base alone has attracted nearly $50 billion in value from the main network.

“The solution will involve taxing layer 2 super profits, similar to how governments impose higher taxes on foreign investment mining companies when they earn excessive profits. Until this happens, the ETH-BTC ratio will continue to decline.”

From this, it’s clear that Kendrick has revised his price prediction for ETH downwards. He has lowered the target for this year by 60% to $4,000, which is unfavorable for the broader altcoin market.

Future Outlook for Ethereum (ETH)

Kendrick mentions that necessary changes in the network could have destructive consequences. The Merge, which eliminated proof-of-work, has distributed the network’s power to layer 2 solutions for “super profits.” This includes the Dencun upgrade, which further strengthens these solutions.

Additionally, the transfer of all fees to Coinbase through the Base network does not bolster the Ethereum network. While Coinbase’s move diversifies its revenue, it also extracts value and cash from Ethereum.

“Layer 2s result in lower GDP on the Ethereum main network and, at least in the short term, lower fees. However, the long-term goal is to enhance scalability and make fees more competitive, potentially leading to a more sustainable market share for Ethereum.”

Despite Ethereum maintaining over 50% in total value locked (TVL) in DeFi and hosting 57% of stablecoins and 80% of tokenized assets, its dominant power is waning. Standard Chartered suggests solutions must be considered for long-term ETH growth.

According to Kendrick, Ethereum must continue its strong growth in the RWA sector, where it holds an 80% market share. This will create consistent demand on the network. Upcoming technical upgrades, like Pectra, could provide supportive improvements in scalability and fee dynamics for Ether.