$ETH
Is Ethereum really a lost cause?
Ethereum's market capitalization reached $320 billion, but this is only 6.25% of Amazon's valuation in the early 1990s. This gap reflects the complexity of Ethereum itself and highlights the numerous challenges it faces in striving for recognition and investment scale comparable to mature tech giants in its early stages.
Although Ethereum's ecosystem is vibrant, the recent inflow of Ethereum ETF spot investments has been pitiful, accounting for only 9% of Bitcoin ETF spot inflows. Such dismal ETF inflows indicate that investors have a clear gap in understanding and confidence regarding Ethereum's long-term development potential compared to Bitcoin.
Ethereum has advanced features such as smart contracts and DeFi integration; however, these have brought about intricate problems. For traditional investors accustomed to simple investment tools, this may induce fear, making them hesitant to venture into it.
In addition, Ethereum is also troubled by scalability and transaction fee volatility issues, which to some extent diminishes its appeal to certain investors.
Only when investors fully recognize Ethereum's comprehensive potential will there be a substantial inflow of funds into spot Ethereum ETFs. As Ethereum continues to innovate and addresses scalability issues with Layer 2 solutions, its attractiveness to institutional investors is expected to increase.
Like Amazon, Ethereum is expected to achieve significant growth through continuous innovation and market share expansion. Just as Amazon diversified and dominated the e-commerce sector using its early success, Ethereum's ongoing development in areas like DeFi is anticipated to drive its valuation and recognition higher.
As Ethereum's position in the financial market becomes increasingly solid, the likelihood of gaining more regulatory support will also increase, further encouraging more institutions to participate and allowing it to be accepted by the mainstream market.
Summary: Old Li is on board, you’re free to do as you please!!!
Continue to pay attention to SUI, NEIRO, ETH, SOL, WIF......
