5 Reasons Ethereum Could Reach $12,000 by 2025 – Analyst

Ethereum has risen over 19% in the past day, nearing $2,500 as the crypto market continues to revive. Amidst excited investors, renowned crypto analyst and OKC Partner Ted Pillows has predicted that this prominent altcoin will maintain its bullish momentum, reaching a market price of $12,000 by 2025. The adoption of institutions, the state of DeFi boosts the Ethereum market, among other things. In a post on X on May 9, Ted Pillows provided some valuable insights into the bullish potential of the Ethereum market. This angel investor and KOL outlined five reasons why ETH investors should expect returns of around 600% before the end of 2025. First, Pillows has suggested that Ethereum is likely to achieve the highest level of institutional acceptance among altcoins. In the context of the U.S. government supporting the crypto market and the increasing opportunities for a digital asset regulatory framework, institutional investors are likely to begin diversifying their capital into cryptocurrencies other than Bitcoin. As seen with the spot exchange-traded funds (ETF), Ethereum ranks higher than other altcoins in terms of portfolio addition, considering its position as the second-largest cryptocurrency with a market share of 7.24% and its expanding smart contract applications. Notably, Ted Pillows emphasizes Ethereum’s dominance in smart contract programmability as another reason why investors are very bullish. According to DefiLlama, the Ethereum blockchain currently holds 80.17% of RWA, 51.01% of circulating stablecoins, and 53.29% of the total value locked (TVL) in DeFi, indicating significant potential for network adoption and price growth in the context of a bullish crypto market. Another potential catalyst for the crypto market highlighted by Ted Pillows focuses on the possibility of introducing staking Ethereum ETFs. The deadline for the SEC’s decision on the proposed staking options is at the end of May and the end of August. However, Bloomberg analyst James Seyfart pointed out that it is more likely that the Commission will wait until the final deadline in October, as seen with ETH options trading. The introduction of staking could drive capital into Ethereum ETFs as it provides an additional income stream for investors. Staking will allow ETF custodians to lock ETH on the Ethereum network to act as validators for a specified period and earn commissions. Token Burn after the Pectra upgrade signals a good time ahead Among other potential bullish drivers, Ted Pillows also pointed out the high ETH burn rate following the launch of the Pectra network upgrade on May 7th. The high burn rate indicates an increase in scarcity, which is always good for the bullish nature of the crypto market. Finally, Ted Pillows suggested the increasing potential of the risk environment by the end of 2025 when the U.S. Federal Reserve is expected to cut interest rates and begin quantitative easing, which will encourage investment in volatile assets like crypto.

At the time of the press release, Ethereum continued to trade at $2,334 after a slight pullback in the market over the past few hours. Notably, the trading volume of this asset increased by 62.81% and is valued at $49.85 billion.