Ethereum Decade: Seven Key Signals for Value Reassessment

On the occasion of the tenth anniversary of Ethereum, the price of ETH is approaching historical highs, and market enthusiasm is rising again. This article analyzes the current development trends of Ethereum from seven dimensions and explores the possibility that this wave of increase may just be the beginning.

1. Institutional Accumulation of Ether

Recently, the buying momentum for ETH has been strong, with several listed companies and asset management institutions actively increasing their holdings and incorporating ETH into their core financial strategies. ETH reserve concept stocks have performed well in the US stock market.

A well-known strategist has made a high-profile bet on ETH, pushing a company to transform into an Ethereum asset company, accumulating over 600,000 ETH positions. As a result, several US stock companies have successively purchased ETH as part of their asset allocation, such as one company converting BTC into 100,000 ETH, while another company already holds approximately 438,000 ETH.

This indicates that institutional investors are viewing Ethereum as a strategic reserve asset, and market recognition has significantly increased.

2. ETF Capital Inflows

Ethereum spot ETF funds continue to flow in. On July 29, the net inflow for the day was 219 million USD, continuing a net inflow for 18 days. A certain ETF had a net inflow of 224 million USD for the day, with a historical total net inflow of 9.704 billion USD. On July 16, nine ETH ETFs in the United States set a new record for daily net inflow, reaching 726 million USD.

In contrast, the inflow of BTC ETF funds has slowed down, reflecting increased institutional confidence in the prospects of ETH. The market capitalization ratio of ETH ETF still has significant growth potential.

The future ETH staking ETF is also expected to be approved, offering an annualized return of 3-5%, which is more attractive to institutions. The ETF effect enhances the liquidity and demand ceiling of ETH, making it an important factor for a long-term bullish outlook.

3. Management Team Transformation

The Ethereum Foundation has made management adjustments over the past year, appointing two new co-executive directors to introduce more professional management and enhance efficiency and execution.

In addition, former core researchers have joined a new project aimed at integrating ETH into the mainstream financial system. This marks the first time the core team has actively engaged with traditional finance, facilitating the institutional transformation of ETH's valuation logic.

IV. Technical Indicators Are Improving

ETH has recently surged strongly, with a monthly increase of about 60%. The ETH/BTC ratio has broken through a key range, reflecting a shift in capital preference towards ETH.

The RSI indicator has formed a buy signal at a low level, and historically, every time a similar signal has appeared, ETH has experienced a significant increase. Analysts believe that if the RSI continues to rise, the ETH price may reach the range of 7000-10000 dollars.

From a technical perspective, this round of rise may not be over yet.

5. On-chain Data Activity

Trading Activity: The average daily trading volume remains stable, the number of active addresses has increased by 16.3% over the past 30 days, and the number of transactions has increased by 14.2%, reaching a new high in nearly six months.

Fee income: In June, Ethereum's fee income was approximately $39.1 million, regaining the second position among public chains.

DeFi TVL: Increased from 60.2 billion USD to 85.9 billion USD, a monthly increase of 42%, reaching a new high in 3 years.

Staking scale: Over 36 million ETH are staked, close to 30% of the total supply, effectively reducing the circulating supply.

Inflation level: The annual net inflation rate is only 0.117%, far lower than BTC, indicating substantially low inflation.

Multiple indicators on the chain jointly support the positive fundamentals of Ethereum, providing support for price strength.

6. The Rise of RWA and Stablecoins

Ethereum dominates the RWA and stablecoin market:

RWA: Custody of 341 types of RWA assets, with a market value of $7 billion, accounting for 55.2% of the total market.

Stablecoins: accounting for over 54% of the supply, more than $137.7 billion in stablecoins are circulating on Ethereum.

This gives ETH a broader value support: on one hand, it is indispensable as "digital oil"; on the other hand, the staking yield highlights its "productive asset" attributes. Some analysts believe that ETH's "fair value" should be between $10,000 and $15,000, indicating more than ten times the appreciation potential.

Stablecoins and RWA are redefining the investment value of ETH, making Ethereum poised to become the global digital dollar settlement network.

7. Progress of the Technical Roadmap

Ethereum continues to iterate and upgrade, and technological progress is an important driving force for the bullish outlook on ETH.

The Pectra upgrade will be completed in May, introducing account abstraction, scalability, and other improvements. The next phase, the Fusaka upgrade, is expected to go live by the end of the year and will further enhance data availability.

In the future, Ethereum will focus on achieving full sharding and implementing state interoperability, continuously enhancing network performance to lay the foundation for the long-term value of ETH.

Summary

On the occasion of Ethereum's tenth anniversary, internal and external factors resonate: core indicators are improving, continuous technological upgrades, and governance optimization are making the network stronger; at the same time, emerging narratives and ETFs are bringing incremental funds, injecting upward momentum for ETH. Although it still faces challenges, Ethereum is transforming into a "new financial infrastructure," with promising future development.