Etherealize cuts long-term ETH target to $250,000

Etherealize, the institutional marketing and product arm for the Ethereum ecosystem, lowered its long-term ETH price target to $250,000 from $740,000. The firm did not attach a date to the forecast.

In a report, Etherealize wrote that it views ETH as a hybrid asset combining features of monetary stores such as gold and bitcoin with returns from proof-of-stake staking. The report cites current staking yields of roughly 2% to 4% as a source of compoundable returns for holders while preserving ETH's bearer-asset properties.

The $250,000 target is framed around an estimated combined monetary premium for gold and bitcoin of about $31 trillion. Using a circulating supply of roughly 121 million ETH, capturing that premium would imply a per-token value above $250,000, the report states.

Etherealize highlighted protocol changes that burn a portion of transaction fees and limit supply growth to about 1.5% per year. The report projects that higher network activity could push supply into deflationary territory.

The firm noted that Ethereum already supports a large decentralized finance and stablecoin economy, which it sees as economic activity that can provide downside protection while broader monetary demand for ETH develops.

Vivek Raman described bitcoin as the ‘foregone conclusion' for one store-of-value asset and called ETH ‘the other contender.' The report did not specify when the $250,000 level might be reached.

Mike McGuiness characterized ETH as ‘better money than bitcoin' on the basis that ETH can earn native yield through staking. He raised a separate concern about bitcoin's long-term security budget and whether transaction fees will replace mining subsidies after the 21 million coin cap is reached.

The report acknowledged competing layer-1 networks such as Canton, Tempo and Solana. Etherealize characterized those platforms as execution layers that compete more directly with Ethereum layer-2 solutions and described them as having lower degrees of decentralization, permissionless access and monetary sovereignty compared with ETH.

Etherealize launched last year and issued the prior $740,000 target at that time. The new $250,000 figure replaces the earlier estimate. The report presents a long-term valuation view and rests on assumptions about market adoption, continued network growth and the relative attractiveness of ETH versus other stores of value. At the time of the report, ETH was trading in the low thousands.