Ethereum Price Target Slashed to $4,000 as Layer-2 Networks Erode Market Cap

Standard Chartered cites Coinbase's Base blockchain and Ethereum's structural changes as drivers of a $50 billion market cap reduction.

Standard Chartered has revised its 2025 Ethereum price target from $10,000 to $4,000, citing a continued 'structural decline.'
The rise of Layer-2 blockchains like Coinbase's Base has redirected significant fee revenue away from Ethereum's main network, reducing its market cap by an estimated $50 billion.
Base alone retains approximately 80% of its fee revenue, benefiting Coinbase while contributing minimally to Ethereum's ecosystem.
The Ethereum Foundation is unlikely to impose taxes or other measures on Layer-2 networks, which analysts suggest could mitigate Ethereum's declining dominance.
Despite the challenges, Ethereum's upcoming Pectra upgrade, expected in late April, aims to improve staking and allow gas fees to be paid in cryptocurrencies other than ETH.