This issue has been quite hot recently; simply put, there is now a wave of U.S. companies emulating MicroStrategy, buying large amounts of ETH, driving the price of Ethereum up, and the market sentiment is soaring. So, can ETH really open a positive flywheel like BTC did back in the day? Let me share a few thoughts:
1) This 'MicroStrategy' move for ETH is indeed quite interesting; in the short term, real money is being put in.
In the past, ETH's rise was mainly driven by retail investors, project teams, and KOLs telling stories and FOMO sentiment. But now, traditional financial institutions like MicroStrategy are starting to buy ETH in large amounts, using it as a 'reserve asset', which is equivalent to giving ETH a shot in the arm.
Although we won't delve into whether these companies genuinely believe in ETH, the key point is that they have invested real money, which in itself has brought unprecedented 'external incremental funds' to ETH. ETH is finally moving beyond being an 'internal game' in the crypto space and starting to gain more mainstream visibility.
2) ETH and BTC are not the same; do not use the same logic to view them.
BTC now resembles 'digital gold', with stable value and clear expectations, held by many institutions as a 'safe-haven asset'. In contrast, ETH is more like a 'productive asset'; its value is closely related to the usage of the Ethereum network, Gas fee income, ecosystem development, and more.
In other words, ETH is more volatile and carries higher risks. If there are issues in the Ethereum ecosystem, such as security vulnerabilities, regulatory crackdowns on DeFi, or staking mechanisms, the price of ETH will fluctuate violently. Therefore, ETH's role as a 'reserve asset' is far less stable and secure than BTC.
3) The 'yield' function of ETH is another major advantage that attracts institutions.
ETH can now earn an annual yield of 3% to 4% through staking, which is comparable to 'on-chain government bonds'. For institutions on Wall Street looking for stable returns, ETH is more attractive than BTC, as it can both preserve value and generate income.
While this puts pressure on the BTC ecosystem (like Layer 2) in the short term, in the long run, it may actually push the BTC ecosystem to accelerate infrastructure development and improve efficiency and competitiveness. After all, competition is the best way to drive progress.
4) This wave of 'MicroStrategy Summer' is actually a major turning point in the Crypto narrative.
In the past, project teams would tell stories to VCs and retail investors in the crypto space. But now, these U.S. companies are telling new stories like 'RWA' and 'TradFi on-chain' to Wall Street. Wall Street is not naive; they do not look at concepts but only at PMF (Product-Market Fit) — that is, hard indicators such as user growth, revenue models, and market size.
This forces crypto projects to shift from 'talking about technology' to 'talking about business', no longer just 'tech enthusiasts' and 'idealists', but needing to genuinely solve real-world problems. This is also the path Ethereum must take in the face of pressure from competitors like Solana.
5) These U.S. companies going all in on ETH are actually 'arbitraging in a regulatory window'.
The companies leading this operation, such as SharpLink Gaming, Bit Digital, BTCS, etc., many of which are experiencing sluggish growth in their main businesses, are in urgent need of new ventures. Their choice to go all-in on ETH is essentially betting on an 'arbitrage window' — to rush in and make profits before regulations are fully implemented.
What they are taking advantage of are the gray areas in American accounting standards, tax treatment, information disclosure, and so on. In the short term, they have indeed made profits, but in the long run, this model is not stable and carries significant risks. These companies may not have the same trading capabilities and luck as MicroStrategy, nor may they withstand future regulatory 'reckoning'.
To summarize:
This round of 'MicroStrategy Summer' is more like a 'big drill' for crypto entering the mainstream financial system. If successful, ETH may indeed usher in a new wave of growth; if it fails, it will not be entirely meaningless, as it at least proves that ETH is starting to be accepted by the mainstream and is no longer an 'island' in the crypto space.
But regardless of success or failure, we must remember one thing: the essence of this wave of excitement is still Wall Street's 'testing the waters' and 'trial and error', and we cannot blindly chase high prices; risks always exist.
So, if you haven't gotten in yet, it's advisable to observe calmly first; if you are already in, don't rush to increase your position; take a good look at the situation before acting. After all, the most feared sentiment in the crypto space is 'FOMO'; acting impulsively can easily lead to losses.