It's 3:30 AM again, and I'm here to talk about the Ethereum that has gone viral in the past month. In just this short month, it has already doubled. This momentum must have left many retail investors who were shorting completely bewildered. So let me help you peel back the surface and take a look at the essence, to see what hard-core logic for the rise is hidden within.
First of all, institutional funds entering the market in the past month have played a crucial role. Previously, Ethereum had experienced many ups and downs, and the chips had already changed hands several times. Now, with listed companies, whales, and ETFs pouring in, they have directly broken through the previous resistance levels. Currently, the Ethereum held by listed companies accounts for about 2.5% of the circulating supply, while Bitcoin only accounts for 4.5% of the circulating supply. Given this, I believe that Ethereum still has a lot of room for growth. Market news indicates that several leading companies plan to increase their holdings to 5%, and this buying wave is far from over.
Additionally, why have large institutions on Wall Street also set their sights on Ethereum in recent months? This leads to the second point: the explosion of new assets and new scenarios. The concept of everything being on-chain is not just empty talk. After stablecoins and RWA became popular, on-chain transactions have become very lively. Behind this is actually the U.S. pushing for compliant crypto financial on-chain solutions, making it easier for global funds to flow into dollar assets. For instance, in the U.S. stock market, previously you had to open an account to trade, but now you can operate with just a click in your wallet. Just think about how powerful this policy drive is.
The last point, which is also key for Ethereum to catch this wave of benefits, is its institutional-level security. There is a concept in public chains known as the impossible triangle (security, decentralization, efficiency), where trade-offs must be made among these three aspects. Ethereum is very smart; it sacrificed some efficiency. It is well-known that Ethereum is slow and has high GAS fees, but it has gained solid security and long-term stability. It has been operating steadily for many years, and in the future, as a large amount of assets and funds flow onto the chain, institutions will likely prioritize reliable options like Ethereum when selecting underlying infrastructure, unlike some public chains, such as SOL. Although SOL is efficient, it compromises on decentralization and is more suited for scenarios that pursue fast-paced trading.
In summary, the logic behind this month's rise is the entry of institutional funds, the explosion of new assets and new scenarios, and robust security. With these three forces combined, it will be difficult for Ethereum not to rise!!
