5 Reasons Why Ethereum Could Hit $12,000 by 2025, According to an Analyst

In the last 24 hours, Ethereum’s value has increased by over 19%, approaching the $2,500 mark as the crypto market shows signs of recovery. Amid the excitement among investors, crypto analyst and OKC Partner Ted Pillows predicts that this major altcoin could maintain its upward trajectory, potentially hitting a market value of $12,000 by 2025.

Institutional Adoption and DeFi Growth to Propel Ethereum

Ted Pillows shared intriguing insights on May 9 regarding the promising outlook for Ethereum. The angel investor and influential figure identified five key reasons why ETH holders could anticipate a profit of approximately 600% by the end of 2025.

Pillows believes Ethereum is set to achieve significant institutional adoption compared to other altcoins. With a supportive pro-crypto stance from the US government and the potential establishment of a regulatory framework for digital assets, institutional investors may begin to allocate their funds into cryptocurrencies beyond just Bitcoin.

Ethereum is well-positioned for portfolio inclusion, particularly with the trend of spot exchange-traded funds (ETFs). As the second-largest cryptocurrency, holding a 7.24% market share and showcasing a range of smart contract applications, Ethereum stands out among altcoins. Pillows highlights its superiority in smart contract functionality as a compelling reason for investor bullishness.

Data from DefiLlama reveals that the Ethereum blockchain currently dominates with 80.17% of real-world assets (RWA), 51.01% of circulating stablecoins, and 53.29% of total value locked (TVL) in decentralized finance (DeFi). This demonstrates significant potential for network growth and price appreciation amid a bullish crypto market.

An additional factor noted by Pillows is the forthcoming possibility of Ethereum ETF staking. The SEC is set to make decisions regarding this proposal in late May and late August, though Bloomberg analyst James Seyfart suggests that a final judgment may not arrive until the deadline in October, similar to prior ETH options trading experiences.

The introduction of staking could attract more investments into Ethereum ETFs by offering investors another avenue for generating income. This process would enable ETF custodians to lock ETH on the Ethereum network, acting as validators for a specified time and receiving rewards in return.

Token Burn After Pectra Upgrade Indicates Positive Outlook

Additionally, Pillows highlights the significant ETH burn rate following the Pectra network upgrade on May 7. A higher burn rate translates to increased scarcity, which typically benefits market price growth.

Lastly, Pillows foresees a favorable risk-on climate in late 2025, as the US Federal Reserve is expected to lower interest rates and initiate quantitative easing. This would likely encourage investments in more volatile assets, including cryptocurrencies.

As of the latest update, Ethereum is trading at $2,334 after a minor market pullback in recent hours. Importantly, its trading volume has surged by 62.81%, reaching $49.85 billion.