In the past two years, Bitcoin has continuously reached new highs, while Ethereum has not broken its previous high and has experienced significant drops in recent months, falling to a low of $1,400.
This has also led many in the market to be pessimistic about it, thinking of it as trash. If it weren’t trash, it should be rising, breaking new highs, and outperforming Bitcoin and SOL. This is the market's commentary on it.
It is precisely because retail investors always define value based on the current price and do not understand what Buffett said: "Short-term prices may be underestimated, but ultimately prices will converge to value," that many have lost confidence in him and abandoned him.
Some people, due to the current price trends, overlook the value brought by the 'Ethereum ETF, the value brought by the Prague upgrade, and the value brought by various policies.'
A painful truth is that not understanding these values means being completely unaware of what might happen in the future.
Today, I will briefly talk about Ethereum.
1. With the Ethereum ETF approval, nearly $3 billion has flowed in. Although this is much less compared to Bitcoin's ETF of around $30 billion, it is real capital flowing into the crypto space via the stock market. Many say that a rate cut is needed for funds and that the market lacks liquidity; this is capital flowing in, the largest financial market in the US is channeling funds into the crypto space.
2. The Prague upgrade has once again improved the efficiency of layer two networks. The emergence of SOL, ADA, ATOM, and others was due to the slow and costly Ethereum network, so they handled that traffic by focusing on speed and low costs, but without security. This upgrade has completely eliminated their advantages; the layer two network has solved the issues of high costs and slow speeds. Coupled with the security and decentralization of the Ethereum mainnet, who would still choose those altcoin companies?
3. The biggest problem solved by this upgrade is 'staking.' Previously, a node could only stake 32 ETH, but after the upgrade, it can stake 2048 ETH, significantly reducing the staking threshold for whales and improving security. The reason the SEC has not approved it before is due to staking security; before the upgrade, large-scale staking was complex. If you have hundreds of thousands or millions of ETH to stake for one month, it would take half a month to withdraw.
Now staking and unstaking can be completed within a day, eliminating the risk of time lag, which significantly reduces the risk for the SEC.
On the other hand, the new SEC chairman is pro-crypto and has been promoting the development of the crypto industry, so after the Prague upgrade, they were given a reasonable reason to approve it.
In summary, the application value of Ethereum is beyond doubt, and its investment value is also evident. Once the Ethereum ETF staking is approved, it will provide more reasons for Wall Street institutions to participate in Ethereum investments.
You can stake Ethereum, and the annualized interest rate is higher than bank savings. Compared to the price of Ethereum relative to Bitcoin, which would you prefer to invest in?
Therefore, the SEC's meeting on June 1 regarding Grayscale's Ethereum ETF staking is worth paying attention to; this is another new milestone.
Do you think it can pass? I think the probability is very high because Hong Kong and Europe have already approved it, and they are eager to create a crypto hub. After the Prague upgrade, the conditions have also allowed it.
Of course, passing does not necessarily mean that it will immediately reflect in the price. It's still back to that saying: "Price may not immediately reflect value, but ultimately price will return to the value it should have."
Investment is about the future; only when you understand these values can you know what will happen in the future, recognize opportunities in advance, and become a 'transcender,' viewing everything from a future perspective.
