We initiate coverage of Ethereum with a BUY rating and 12-month price target of $8,500, a 218% implied upside from current levels.
Our constructive view is predicated on five structural tailwinds that position Ethereum as the dominant infrastructure layer for the emerging tokenized economy: (1) entrenched stablecoin settlement dominance processing $8.9T in H1 2025 transaction volume; (2) accelerating institutional adoption evidenced by $22B in spot ETF AUM and $18B in corporate treasury allocations; (3) commanding market share in the $16-30T addressable RWA tokenization market; (4) unique yield-bearing characteristics (2-4% base, 8-12% restaking) transforming ETH into a reserve asset; and (5) sustained DeFi supremacy with $84-93B TVL and 49-56% market share.
Our valuation framework incorporates Network Value to Transaction (NVT) analysis, supply-demand dynamics, and institutional allocation modelling. We believe current valuations fail to reflect the structural supply compression from staking (30% of supply locked) and EIP-1559 burn mechanics, combined with institutional demand acceleration. Our bear/base/bull scenarios yield 12-month price targets of $5,000/$8,500/$12,000+ respectively, with a long-term 2035 valuation range of $40,000-$80,000.
Inside this investment insight
- Five pillars establishing Ethereum’s dominance in the tokenized economy
- Multi-scenario valuation framework with 12-month and 2035 price targets
- Institutional adoption metrics and regulatory catalysts driving ETH demand
- Strategic portfolio allocation recommendations for yield-bearing digital assets
Read this investment insight for our strong BUY rating on Ethereum and understand why it is the foundation for the tokenized future of global finance
