Legal standard reduces the target ETHEREUM price to $ 4000: Here is the reason for blame the Coinbase Group

Carted Standard On Monday, he called for the imposition of taxes on the extra profits he obtained 2 Blockchains layer Work on ethereum Eth/USDWarning that without such measures, lower ethereum in relation to Bitcoin It is likely to continue.

Recommendation, part of a detailed search note issued on Monday, argues that class networks 2- Special a baseA large value is extracted from Ethereum without contributing to the proportion to its environmental system.

What happened: Jeffrey KindrikThe World Research President compared the bank’s digital assets the profitability that has not been verified for these secondary groups of mining companies abroad facing sudden taxes.

“The solution will be to impose taxes on the second layer of profit in the same way that governments sometimes receive supercomas for foreign mining companies that extract excess profits,” Kendrick said.

According to the report, the maximum ETHEREUM market has suffered greatly from the height of the base, which is Blockchain Layer-2 developed by Coinbase currency.

Research is estimated that the base alone has drained nearly $ 50 billion in the market value of ETHEREUM.

The loss is attributed to keeping the majority revenue-by 80 %-and to be directed to Coinbase, while only part returns to the ETAREUM network for class settlements 1.

The report confirms that ETHEREUM special promotions, including incorporating 2022 to prove the contract and update 2024 Dencun, contributed to this direction.

These changes, while improving expansion and reducing fees, have also sought ETHEREUM within their own ecosystem, allowing the -2 layer of revenue generation.

Also read: The Trump administration refers to the strategy of the accumulation of neutral bitcoin

Why do it matter: As a result, Standard Charged reviewed its ETHEREUM price goal down, expected to reach ETH to $ 4000 by the end of 2025, which is a sharp reduction in the previous $ 10,000 estimate.

The ETH-TC rate is also expected to decrease, as it reached 0.015 by 2027-which is the lowest level since early 2017.

Kendrick has placed on the broader effects, saying: “The changes made on ETHEREUM over the past few years, although it may be necessary, has been a devastating value. The integration has removed the unique ETH proof of the type of work between their peers from smart contracts, and the concept of layer 2 gave a free value. Then DENCUN 2S gave a more than super energy for them.”

The analysis provides the Blockchain concept “GDP” to measure the value generated in the ETHEREUM ecosystem, similar to national economic production.

This scale reveals that an increasing share of transaction activity – profits – occurs off Ethereum Mainnet, especially on the base, which supports the intervention state.

While like another layer like Arbitrary Arb/USD and optimism OP/USD Do not extract profits from the outside in the same way, the report removes the base as a source of erosion of the maximum market.

The continuous growth of the base, which explains the majority of the new addresses between the main layer 2, indicates that this trend can accelerate unless corrective actions are taken.

Standard Charterd argues that the pre -emptive shift from ETAREUM – such as implementing a 2S tax – can reflect the current path.

Without this, the bank sees ETHEREUM performance for the continuous Bitcoin in the coming years.

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