Ethereum's Decade: Ten Reasons to Be Bullish on ETH2. Powerful Development Capabilities: Ethereum's ecosystem boasts a strong developer community and accumulated intellectual support, continuously driving innovation and growth
Ethereum's Decade: Ten Reasons to Be Bullish on ETH
Ethereum, the world's leading smart contract platform, continues to attract investors and developers with its vast potential. Despite market volatility, the future of Ethereum is promising. Here are ten reasons why you should be bullish on ETH:
1. Low Inflation: Despite low gas fees, Ethereum's annual inflation rate remains below 1%. In contrast, other major L1 competitors have higher inflation rates, such as SOL at around 4%. Additionally, most other L1s (SUI, APTOS, etc.) are expected to see significant VC unlocks in the coming years, leading to increased inflation. Low inflation ensures ETH's value stability, providing more security for long-term investments.
2. Powerful Development Capabilities: Ethereum's ecosystem boasts a strong developer community and accumulated intellectual support, continuously driving innovation and growth. A large number of developers are actively involved in Ethereum project development, constantly creating new applications and protocols, injecting vitality into the Ethereum ecosystem.
3. TVL, dApps, and Adoption: Although adoption rates for all L2s are also rising, Ethereum remains the top smart contract platform, accounting for 58% of TVL (although the platform employing all L2s is ~65%). The significant amount of dApps and TVL attest to the scale and scope of the Ethereum ecosystem, attracting more users and developers to join.
4. Regulatory Certainty: ETH and BTC are not securities, while SOL may be deemed as one. Clearer regulations in the US and EU are boosting confidence and opening doors for institutional players like BlackRock. Clear regulatory policies will provide a more stable environment for Ethereum's future development, attracting more institutional investors.
5. Stablecoin Dominance: Over 50% of the stablecoin supply is issued on Ethereum. Stablecoins play a crucial role in cryptocurrency trading, and their concentrated issuance on Ethereum reflects its position in the cryptocurrency finance domain.
6. Leading RWA Issuance: Ethereum has $1.9B in tokenized US Treasury bonds issued on its platform, with $1.3B already flowing in. Ethereum is leading the way in RWA (Real World Asset) issuance, combining traditional financial assets with blockchain technology, expanding Ethereum's application scenarios.
7. Modular Scaling: L2s provide scalable growth for Ethereum, giving it the flexibility to adapt to growing demands in the long term. Additionally, cross-L2 interoperability issues may be resolved faster than we think. Modular scaling is an effective means to address Ethereum's scalability challenges, opening up more possibilities for its future development.
8. Upcoming Pectra Upgrade: The upcoming Pectra upgrade will bring user experience improvements, making development smoother and more efficient. Pectra is a significant upgrade for Ethereum, bringing enhanced performance and a better user experience, further solidifying its leading position.
9. Strong Network Effects: Ethereum's strong network effects stem from its early lead, large developer community, mature DeFi ecosystem, institutional adoption, and robust security, making it the platform of choice for dApp builders. Network effects will continue to attract more users and developers to the Ethereum ecosystem, creating a virtuous cycle.
10. Don't Forget ETHETFs: While current inflows are low, there is potential for significant inflows when the market turns bullish. Institutions have not yet entered the Ethereum market on a large scale, but once they join, it will bring huge capital inflows to Ethereum.
In conclusion, Ethereum's low inflation, powerful development capabilities, extensive application scenarios, clear regulatory policies, and expanding ecosystem provide a solid foundation for its future growth, making it a worthwhile investment choice.
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