Global banking giant Standard Chartered has released ambitious five-year price projections for major cryptocurrencies, including Avalanche (AVAX), Bitcoin (BTC), and Ethereum (ETH). These forecasts suggest that Avalanche could significantly outperform both Bitcoin and Ethereum by the end of 2029.
Detailed Price Projections
Standard Chartered expects substantial growth for Avalanche over the next several years. According to their estimates:
- 2025: AVAX reaching $55
- 2026: Rising to $100
- 2027: Climbing to $150
- 2028: Achieving $200
- 2029: Hitting $250
This projected growth represents an increase of over 1,200% from its current trading price of approximately $20.
Bitcoin and Ethereum Forecasts
For Bitcoin, the bank updated its earlier forecast, now projecting:
- 2025: BTC reaching $200,000
- 2026: Appreciating to $300,000
- 2027: Growing to $400,000
- 2028: Hitting $500,000 and maintaining this level through 2029
Ethereum is expected to see steady but less dramatic growth:
- 2025: ETH reaching $4,000
- 2026: Rising to $5,000
- 2027: Climbing to $6,000
- 2028: Achieving $7,500 with no change anticipated in 2029
Comparative Performance Analysis
Standard Chartered provided ratio metrics to illustrate how AVAX might perform against BTC and ETH:
- The BTC-to-AVAX ratio, which measures how many AVAX tokens equal one BTC, is expected to drop from 3,636 in 2025 to 2,000 in 2029
- The ETH-to-AVAX ratio is projected to decline from 73 to 30 during the same period
These decreasing trends indicate that AVAX is expected to appreciate faster than both Bitcoin and Ethereum over the next five years.
Why Standard Chartered Is Bullish on Avalanche
Standard Chartered has initiated coverage of Avalanche, citing several factors that position the network for long-term success. Geoffrey Kendrick, the bank's global head of digital assets research, emphasized that current market conditions provide an opportunity to identify winners in the next digital asset upswing.
Technological Advancements
Avalanche's approach to scaling, particularly after its Etna upgrade (also known as Avalanche9000), has significantly enhanced the network's capabilities. Activated in December 2024, this upgrade dramatically reduced the cost of launching subnets (now called Layer 1 blockchains), slashing setup expenses from up to $450,000 to nearly zero.
Growing Developer Activity
These changes appear to be attracting new developer engagement:
- Approximately 25% of Avalanche's active subnets are now Etna-compatible
- Developer numbers have increased by 40% since the upgrade
Kendrick also noted that some developers are migrating from Ethereum Layer 2 solutions to Avalanche due to its compatibility with Ethereum code and the lower overhead for launching new subnets or L1 chains.
Future Growth Drivers
While fees on Avalanche can still run higher than certain Ethereum L2s like Arbitrum, Kendrick believes attracting completely new applications—particularly in gaming and consumer-focused tools—will be critical to Avalanche's growth trajectory.
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Market Context and Volatility Considerations
At the time of the report, Bitcoin was trading at approximately $83,334. Kendrick acknowledged that while Avalanche shows strong growth potential, it also exhibits higher volatility levels compared to Bitcoin—a factor investors should consider when evaluating these projections.
Frequently Asked Questions
What is Standard Chartered's price prediction for Avalanche?
Standard Chartered predicts AVAX will reach $250 by the end of 2029, representing over 1,200% growth from current levels. The bank expects steady annual increases, with targets of $55 (2025), $100 (2026), $150 (2027), and $200 (2028).
How does Avalanche's projected performance compare to Bitcoin and Ethereum?
The bank forecasts that Avalanche will outperform both Bitcoin and Ethereum in terms of relative price gains. Ratio metrics indicate AVAX will appreciate faster against both BTC and ETH over the five-year period.
What factors support Standard Chartered's bullish outlook on Avalanche?
Key factors include the Etna upgrade dramatically reducing subnet launch costs, increased developer activity (40% growth since the upgrade), Ethereum code compatibility, and potential for new applications in gaming and consumer tools.
What is the Etna upgrade and how does it benefit Avalanche?
The Etna upgrade (Avalanche9000) activated in December 2024 reduced the cost of launching subnets (Layer 1 blockchains) from up to $450,000 to nearly zero. This has made the network more accessible to developers and projects.
Is Avalanche more volatile than Bitcoin?
Yes, Standard Chartered acknowledges that Avalanche exhibits higher volatility levels compared to Bitcoin, which investors should consider when evaluating these long-term projections.
Are developers actually moving to Avalanche from other platforms?
The report indicates some developers are migrating from Ethereum Layer 2 solutions to Avalanche due to Ethereum code compatibility and significantly lower overhead for launching new subnets or L1 chains.
Standard Chartered's analysis presents a compelling case for Avalanche's potential growth, though as with all cryptocurrency investments, thorough research and risk assessment remain essential. The bank's projections suggest that despite higher volatility, AVAX could deliver substantial returns for investors over the next five years.