I've talked a lot about BTC recently. Today I add another perspective on "The Queen - ETH".
Since its inception in 2013, ETH has gone through many ups and downs in the market but has always maintained its position as number 2 (after BTC). The smart contract of ETH has paved the way for DApps => The ICO boom in 2017, or DeFi in 2020, and NFTs in 2021... But in this post, I don't want to delve too deeply into technology; I will outline 5 main reasons to continue trusting in the growth of ETH.
1. ETH is capturing a very large market share in Crypto. You may not pay much attention, but ETH's dominance is approximately 8% (meaning ETH accounts for 8% of the total market capitalization of coins). Moreover, the ecosystem of Ethereum is incredibly vast. It is not without reason that top developers of large-scale applications choose Ether as a platform for development.
2. ETH has been approved for ETF just like BTC. From July 23, 2024, ETH is officially approved for ETF contracts (like BTC), which officially brings ETH closer to massive funding from the traditional finance sector. Although there hasn't been any significant price increase since the ETF approval, in the long run, it will certainly help the liquidity of ETH become attractive enough for the super whales in the financial market.
3. Blockchain together with AI will explode in the new era. Just 5 years from now, AI will develop on a global scale. And of course, they cannot use traditional payment methods. Instead, they will use Blockchain, with Ethereum being the most prominent. Most of you may not know this. But this is an inevitable trend based on the research of leading technology experts worldwide.
4. The transition from POW => POS has helped save up to 99% of energy. There will be many who say that moving to POS will lose decentralization, leading to token inflation and a decrease in ETH price over time.
So I ask you a question: The stocks of the world's leading corporations still print freely, yet their prices continue to rise over the years. So that's not the main reason; the crux of the matter is: Scarce supply, users buy, hold, and do not sell, then the price will increase.
Since the Merge, ETH has become deflationary due to EIP-1559 burning fees. And the more users that use it, the more ETH is burned → reducing supply → increasing price.
5. ETH is the Amazon, Google... of the 2000s. Since the Dot-com bubble burst in 2000, even legitimate companies were affected, causing a decline of 70-90% in value. But afterward, when the market recovered, they have existed to this day with growth values measured in multiples - several dozen times.
And ETH is also in a similar position now.
I don't know exactly when ETH can reach the 5-digit mark. From my personal perspective, technology-type assets like ETH only experience the strongest growth when money is pumped out into the market. So clearly, we need to see the Fed lower interest rates, pump QE, or U.S. government bond yields need to cool down.
However, accumulating ETH in the long term (you can DCA periodically or buy when the price drops significantly...) I believe is a wise investment decision in the next 3-5 years.
