The stablecoin bill catalyzes Ethereum's value, and institutions are fully betting on Ethereum. Is it an opportunity or a trap?
As BTC enters the U.S. strategic reserve, market investors' interest in crypto assets is shifting from Bitcoin to Ethereum. The price of Bitcoin is too high, akin to BTC being a 100 yuan note, while ETH is a 10 yuan note. This trend has made ETH a strategic reserve.
From Ethereum's performance on July 11, more institutions are participating in Ethereum's strategic reserve, slowly accumulating and stockpiling. This will make Ethereum a scarce commodity. According to economic principles, when an item becomes scarce and there are still many enthusiasts in the market, the price will inevitably rise.
Why are major institutions participating in Ethereum's strategic reserve?
1. Recently, the Stablecoin Bill was passed, and the concept of stablecoins is gaining popularity. Many smart contracts on Ethereum are the global stablecoins Tether and USDC, as well as the core vehicles of decentralized finance.
2. In the future, BTC will tend to stabilize more, with the market leadership replaced by the second-largest player, ETH. Additionally, the high price of BTC will shift market investment demand from BTC to ETH, making it a refuge for large capital and appreciation.
3. Ethereum is undervalued compared to Bitcoin; with a market cap of 400 billion versus 2000 billion, there is still 400% appreciation potential. Its annual staking yields and compliance have been recognized by Wall Street capital.
4. Another point is that the size of ETH is large, and compared to Bitcoin, it is relatively small. Institutions deal with hundreds of millions. Joining ETH won't be a massive move, but if it's a smaller coin, like HAEDAL I mentioned a few days ago, entering would skyrocket its value, making it difficult to exit. It is certainly easy to enter and exit. ETH is currently at the 3800 stage, breaking the new high of 4100 is not an issue, and reaching the historical high of 4800 is also not a problem. After breaking the historical high, it is expected to rise to 10,000 points, which will be ETH's ultimate marching route.
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