American banking citizens said ether Ethereum$3,737.16 It could exceed $10,000 in the next two years due to increased adoption, increased institutional inflows, and shrinking supply.
The bank expects the accelerated adoption of Ethereum to provide strong tailwinds to the blockchain's native token Ether, noting that the network is firmly established as a leading smart contract platform.
Ethereum's programmable infrastructure powers decentralized finance (DeFi), tokenization, and a burgeoning ecosystem of on-chain applications, the bank said in a report on Wednesday. Its strong network effects, active developer base, and modular scaling roadmap are key differentiators, enabling secure, high-throughput transactions.
As regulatory clarity improves and financial institutions begin to deploy capital, Ether is increasingly positioned as the native fuel and collateral for this expanding digital economy, the report said.
Analysts believe that the fundamental value of cryptocurrencies is driven by a surge in demand as liquid supply shrinks, and that valuations are closely tied to the scale of economic activity on the network.
The company noted that institutional adoption, exchange-traded fund (ETF) inflows, and tokenization of real world assets (RWA) are the key drivers of new net demand, while staking, Treasury absorption, and EIP-1559's fee burn mechanism are simultaneously shrinking supply.
The bank estimates that by 2027, less than 50 million ether of the approximately 120 million ether currently in issue could actually remain in liquidity, of which 35 million is already staked and more are expected to be locked up or burned as network activity accelerates. This movement reflects the effect of corporate buybacks, which shrink the float as usage expands.
Analysts noted that historically Ether's market capitalization has moved in tandem with the total value secured on the network, and on-chain payment volume is on a trajectory of exponential growth.
Citizens said that in a float-constrained environment, even modest capital inflows can have a significant price impact, and predicts that Ether could rise well above $10,000 over the next two years in a base-case scenario.
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