Citizens Bank's $10,000 Prediction for Ethereum

Recently, the price of Ethereum (ETH) is poised to rise due to increasing institutional interest and decreasing supply. Citizens Bank, in an analysis, forecasts that Ethereum could reach a price level of over $10,000 within the next two years. This prediction is made in an environment where institutional investments are on the rise and the circulating supply continues to decline.

According to the report published by Citizens Bank, the increase in the adoption rate of Ethereum and its strong position in the field of smart contracts is paving the way for a new bull market. The bank also emphasized that the developer community has turned Ethereum into the "infrastructure of the blockchain economy" in the long term. Ethereum powers a broad ecosystem, including decentralized finance (DeFi), tokenization, and on-chain applications.

Analysts stated that increasing regulatory clarity and commitments from institutional capital are helping Ethereum become the "native fuel and collateral of the digital economy." At the same time, ETF (exchange-traded fund) entries and factors such as the tokenization of real-world assets (RWA) are expected to create new demand for Ethereum. On the other hand, staking, treasury purchases, and the EIP-1559 fee burning mechanism are noted to tighten supply.

Citizens Bank predicts that by 2027, of the total 120 million Ethereum supply, only 50 million will remain "truly liquid." The remainder is expected to be taken out of circulation through staking or burning. This situation could create a share buyback effect for companies, where even small capital influxes could have significant impacts on price in a limited supply environment. In the bank's base scenario, the price of Ethereum is predicted to significantly exceed $10,000 within the next two years.