Seven Signals for the Revaluation of Ethereum Ecosystem Value

Ethereum's price has surged recently, just one step away from its historical high. This article analyzes the key factors supporting this round of increases from seven perspectives and explores the potential development prospects of Ethereum.

1. Institutional Accumulation Trends

Recently, ETH buying pressure has been strong, with several listed companies and asset management institutions actively increasing their holdings and incorporating ETH into their financial strategies. ETH reserve concept stocks have performed well in the US stock market.

Well-known Wall Street strategist Thomas Lee has made a high-profile bet on ETH, promoting the original Bitcoin mining company Bitmine to transform into an Ethereum asset company, accumulating over 600,000 ETH positions. Under his influence, several publicly listed companies in the U.S. have successively purchased ETH as part of their asset allocation, such as Bit Digital and SharpLink Gaming.

This indicates that institutional investors are viewing Ethereum as a strategic reserve asset similar to Bitcoin, and the market recognition of Ethereum has significantly increased.

2. ETF Fund Inflows

With the rise in ETH prices, substantial off-exchange funds are flowing into Ethereum ETFs. In late July, the Ethereum spot ETF saw a continuous net inflow for 18 days, with a single-day maximum net inflow exceeding 700 million USD, setting a new historical record.

In contrast, the inflow of funds into Bitcoin ETFs has slowed during the same period, indicating that some funds have shifted from BTC to ETH, reflecting institutional optimism about the prospects of Ethereum. Currently, the market capitalization of Ethereum ETFs is still lower than that of Bitcoin, leaving significant room for future growth.

In addition, the Ethereum staking yield ETF is also in preparation and is expected to be approved in the second half of this year. These types of products will provide additional staking yields based on holding spot ETH, making them more attractive to institutions.

ETFs bring more liquidity and demand to Ethereum, significantly enhancing the investment attributes of ETH, and are an important external factor supporting the long-term bullish outlook.

3. Management Changes

The Ethereum Foundation has recently undergone a management restructuring, with two new co-executive directors appointed, introducing more professional management, which is expected to enhance operational efficiency and strengthen external communication.

In addition, former core researcher Danny Ryan joined the Etherealize project, aiming to promote ETH into the mainstream financial system of Wall Street. This marks the first time the Ethereum core team has actively integrated into the traditional financial ecosystem, which is beneficial for the institutional transformation of ETH's valuation logic.

4. Technical Indicators Improve

In the past month, the price of ETH has surged by about 60%, far exceeding the market average. The ETH/BTC ratio has broken through a key range, increasing by 40% in a single month, indicating a shift in capital preference from Bitcoin to Ethereum.

The RSI indicator has shown a buy signal at a low level. Historically, whenever a similar signal appears, ETH often experiences a significant rise. Analysts expect that if the RSI continues to climb, the ETH price is likely to reach the range of $7000-10000.

V. Increasing On-chain Activity

The average daily transaction volume on the Ethereum mainnet remains stable, with a significant increase in the number of active addresses and transactions recently. The total locked value in DeFi has reached a three-year high of ( TVL ), and the amount of staked Ether continues to rise, approaching 30% of the total supply.

It is worth noting that Ethereum currently shows slight inflation, but the actual inflation rate is far lower than the general market perception, with an average net inflation rate of only 0.117%, more than 11 times lower than Bitcoin.

These on-chain indicators collectively support the positive fundamentals of Ethereum, providing support for the strengthening of ETH prices.

6. Development of RWA and Stablecoins

Ethereum dominates the RWA and stablecoin market. Currently, over 341 types of RWA assets have been hosted on Ethereum, with a market value of 7 billion USD, accounting for 55.2% of the entire on-chain RWA market.

In terms of stablecoins, the Ethereum network carries over 54% of the world's stablecoins, with a total value exceeding $137.7 billion. This gives ETH broader value support, serving both as the "digital crude oil" for paying gas and highlighting its "productive asset" attributes.

Some analysis suggests that Ethereum has a broad prospect as a stablecoin and RWA carrying platform, and that ETH still has more than 10 times the appreciation potential in the coming years.

7. Advancement of the Technical Roadmap

Ethereum continues to iterate and upgrade, recently completing the Pectra upgrade, which introduces account abstraction and increases the staking limit among other important improvements. The next phase, the Fusaka upgrade, is expected to go live by the end of the year and will further expand data capacity.

Looking to the future, Ethereum will strive to achieve goals such as full sharding and state accessibility, continuously enhancing network performance and laying the foundation for the long-term value of ETH.

In summary, the internal fundamentals of Ethereum and the external environment resonate, with core indicators improving, continuous technological upgrades, and the expansion of emerging application scenarios, injecting sustained upward momentum into ETH. Although it still faces some challenges, Ethereum is transitioning towards "new financial infrastructure," and its future development is worth looking forward to.