The price of ETH has not increased as expected, so-called "hard to rise", mainly for the following reasons:
• Capital flow factors: In this round of bull market, the approval of Bitcoin spot ETFs has led to a large influx of institutional capital into the Bitcoin market. Moreover, in the eyes of institutional investors, the investment logic of Bitcoin as an anti-inflation asset and store of value is clearer, while the investment logic of Ethereum is relatively complex, resulting in a smaller scale of capital inflow into Ethereum compared to Bitcoin.
• Differences in halving effects: Bitcoin undergoes halving every four years, and the reduction in supply stimulates price increases with clear market expectations for its halving. Although Ethereum has the EIP-1559 burning mechanism and PoS staking, it does not have a clear "halving" event like Bitcoin, leading to a lower market perception of its supply reduction and difficulty in forming price increase expectations due to halving.
• Technical application issues: The high Gas fees on the Ethereum mainnet have caused many transactions to shift to Layer 2 solutions such as Arbitrum, Optimism, and Base, increasing the usage rate of Layer 2 and diverting transaction demand away from the Ethereum mainnet, thereby affecting the price of ETH.
• Changes in market enthusiasm: During the bull market from 2020 to 2021, the explosion of DeFi and NFTs attracted a large amount of capital into the Ethereum ecosystem. However, the overall DeFi and NFT markets are currently sluggish, lacking new hotspots that can drive the growth of ETH demand, resulting in a relative decrease in demand for ETH.
• Uncertainty in regulatory policies: There is uncertainty regarding the attitude of U.S. regulatory agencies towards Ethereum, such as attempts to bring Ethereum under regulatory scrutiny, which makes investors more cautious when investing in ETH and has, to some extent, affected the price trend of ETH.
Recently, I struck gold in the potential meme coin sector! Conan on the Solana chain, ending with xBQt, is closely linked to the Trump concept and is worth paying attention to. I have already positioned myself in advance; in my opinion, it has the potential for a tenfold increase in the short term, and from a long-term perspective, the increase could even reach 10 - 50 times. It is said to be the only "Dogecoin" personally awarded by Trump, and its unique background and topic are likely to attract a large influx of capital into the meme coin track. If you are interested in meme coins, Conan is definitely worth your close attention; it may become the next dark horse in the crypto circle.
#Trump #Conan $ETH #eth #特朗普加密政令 #美股财报季来袭