💥The surge of ETH, the continuous breaking of resistance, many must have noticed! Some friends are cheering, while others remain bearish. With the popularity of RWA and stablecoins 🔥, how long will the new narrative sustain this bull market?

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1. Institutional funds entering the market: Chip structure and capital increase

◦ Chip level: Since the bull market of 2024, ETH has undergone multiple rounds of fluctuations and handovers, resulting in a cleaner chip structure, laying the foundation for breaking previous resistance levels.

◦ Capital level: New main funds such as listed companies and ETFs continue to flow in. Compared to BTC (listed company holding ratio is about 4.5%), ETH's current holding ratio of listed companies is only 2.5%, indicating significant room for accumulation/increase, and institutional buying has not reached saturation, becoming a direct driving force for price increases.

2. New assets + new scenarios: Compliance and on-chain ecological expansion

◦ Policy background: The U.S. promotes "compliance-based crypto financial on-chainization," allowing global funds to flow frictionlessly into dollar assets (such as on-chain trading of U.S. stocks).

◦ Scenario implementation: RWA (real asset tokenization) and the popularity of stablecoins have led to "everything on-chain," driving the prosperity of on-chain transactions (e.g., models like x stocks as "on-chain investment banks" are tolerated by regulators). Loose policies + explosive new scenarios make institutions more willing to choose ETH ecosystems for asset allocation.

3. Institutional-level security: The trade-offs of public chains in the "impossible triangle"

◦ Technical logic: Public chains must make trade-offs among "security, decentralization, and efficiency." ETH sacrifices some efficiency for institutional-level security and long-term stability (the only underlying public chain that has undergone long-term verification and stable operation).

◦ Competitive comparison: Public chains like Solana prioritize efficiency and weaken decentralization, making them more suitable for "lightweight trading scenarios"; whereas ETH, with its security, becomes the preferred underlying facility for large and complex financial transactions, comparable to "Wall Street-level financial infrastructure," occupying the mainstream track.

‼️This round of ETH's surge is the result of the joint effects of institutional funds restructuring the chips, new asset scenario policy drivers, and technical security bottoming, with each factor still strengthening (e.g., institutional increased holdings, RWA penetration, compliance promotion), supporting the long-term narrative of ETH $ETH