Three reasons why Ethereum’s price is seen to be heading for $10,000

Ethereum is waking from its slumber, one analyst says.

Two years ago, when Ethereum traded at $1,600 and faced mounting competition, Samir Kerbage, chief investment officer at Hashdex, called it crypto’s “sleeping giant.”

Now, he’s pointing to three converging catalysts that make Ethereum’s investment case one that’s “compelling for long-term holders.”

“One enduring lesson I’ve learned from navigating crypto markets over the last decade is that transformative ecosystem shifts often unfold during periods of apparent quiet,” Kerbage wrote in an August 27 note to investors.

“My expectation is that ETH can surpass $10,000 once we start to see stablecoin solutions being implemented for US payments.”

Kerbage’s latest note came days after Ether broke a new price record.

Until then, the token’s price performance was lacklustre this year compared to cryptocurrencies like Bitcoin, XRP and Solana.

But nowadays, the tide seems to have turned.

Fresh regulation surrounding stablecoins, the surge of Ethereum treasuries, “relentless bids” into exchange-traded funds, and the rise of staking yields are driving Ether’s growth.

Today, Ether trades at about $4,400, up 83% in the past year. Market watchers are predicting it will trade at $7,500 by years-end, or even at $20,000 at some point in this cycle.

Here’s the three reasons why Kerbage sees Ethereum’s price going higher.

Staking

First, staking.

Investors love yield-bearing assets, and Ethereum’s staking model offers exactly that but in crypto form.

Nearly 36 million Ether are now staked, according to the Ethereum Foundation, representing nearly one-third of the network’s total supply.

“This growth reflects heightened network security and investor confidence, with staking rewards averaging a 2.9% APR, appealing to yield-focused portfolios,” Kerbage noted.

Kerbage isn’t the only market watcher who thinks staking will drive a lot of Wall Street interest for Ethereum.

For Jeff Park, head of Alpha Strategies at Bitwise, Ethereum is a stronger corporate play than Bitcoin.

“Investors will lean into Ethereum not just so that it can appreciate in price alone, but because someone is doing something with that to generate yield,” Park said.

Institutions have been pouring in, with ETFs now holding $24 billion in Ether, according to Coinglass. Some analysts predict large entities will hold 10% of the total supply.

Tokenisation

Tokenisation is the second driver behind the price, Kerbage said.

The tokenisation of real-world assets on Ethereum has blown past projections, reaching $24 billion by mid-2025 — up from just $5 billion in 2022. Moreover, Bank of America forecasts the market will hit $16 trillion over the next five to 15 years.

At current growth rates, however, that timeline looks conservative.

“That vision is materialising faster than anticipated,” wrote Kerbage.

Value stored in RWAs sits just above $15 billion, according to DefiLlama, with Ethereum accounting for $11 billion.

BlackRock CEO Larry Fink, who called tokenisation a potential finance revolution in 2023, reiterated his bullish stance this year, wrote Kerbage. His firm’s own tokenised fund, BUIDL, is the largest in the sector, with $2.2 billion.

Kerbage expects the Genius Act to bring even more froth to the sector, as “stablecoins are set to boom.”

Generational wealth transfer

In third place, there’s the youngsters.

Over 50% of Gen Z now owns crypto, with $100 trillion set to move from older to younger generations over the next two decades.

“This shift mirrors historical tech adoption — credit cards in the 1990s or the internet’s rise,” Kerbage observed.

“Skepticism from older cohorts persists, but a decade into its existence and Ethereum’s utility is undeniable, much like how we now can’t imagine life without smartphones.”

Pedro Solimano is DL News’ Buenos Aires-based markets correspondent. Got at a tip? Email him at psolimano@dlnews.com.