A Stunning Turnaround! The Three Major Hidden Technologies Behind Ethereum's Strong Rebound

After months of silence, Ethereum (ETH) suddenly exploded, soaring 65% within 30 days to reach a high of $2,750, far surpassing competitors like Bitcoin and Solana. Bernstein analyst Gautam Chhugani points out that three core transformations are driving this surge, completely reshaping Ethereum's position in the crypto ecosystem.

First, tokenization and stablecoins have reignited Ethereum's vitality. While Bitcoin is favored by ETF enthusiasm and Solana focuses on retail investors, Ethereum has become a backbone of real-world digital assets with a 51% market share in stablecoins and traditional financial giants like BlackRock and Franklin increasing their stakes in token assets. Stripe's $1.1 billion acquisition of a stablecoin platform and Meta's restart of its stablecoin plans indicate that future payments and tokenized securities will become the next mainstream wave.

Second, Layer 2 technology has gained institutional-level attention. Layer 2, represented by Base, achieved $84 million in revenue last year, propelling Ethereum towards an institutional settlement layer. Robinhood's acquisition of Layer 2 operator WonderFi will allow brokers to directly issue tokenized stocks, further driving up ETH demand.

Third, short-selling funds have rapidly retreated, triggering price squeezes. In recent months, funds have hedged long positions in Bitcoin and Solana by shorting ETH; now, shorts are being forced to cover their positions, creating strong buying pressure and pushing prices up quickly.

Bernstein believes that Ethereum's rise not only enhances ETH's value but also revives altcoins, stimulating trading volume growth for exchanges and brokerages. If the trend continues, Ethereum will completely shed its 'centrist' label and return to its throne as the most widely applicable and valuable platform in the crypto world.