Ethereum bull run begins: Institutional funds may become the biggest driving force

The popularity of Ethereum continues to rise, and the real bull run may just be beginning. Institutional demand is becoming a key driver of this rally, with ETF inflows and treasury holdings accelerating this trend. Despite significant recent gains, Ethereum may still be undervalued.

Main Points

• Bitcoin funds are gradually flowing into Ethereum, and this trend may last longer and have far-reaching effects.
• After the passage of the Genius Bill, large banks will also launch their own stablecoin strategies.
• The market's trust and confidence in Ethereum are continuously strengthening.
• The asset scale on Ethereum has reached $7.5 billion, and it is expected to experience explosive growth in the future. Stablecoins and stock on-chain will become the main driving forces.
• The crypto market has a strong reflexivity; an increase in the price of ETH will attract more assets to go on-chain and more users to enter, while also improving the fundamentals.

Key Data

• Active loans on Ethereum increased by 98%
• The on-chain RWA annual growth rate has reached 200%
• The asset management scale on the Ethereum chain has reached an all-time high.
• The ETH balance on centralized exchanges is at a historical low.
• 43% of ETH supply is locked in smart contracts

bull run drivers

1. Institutional adoption of Ethereum increases, driving demand growth through stablecoins and RWA.

2. Institutional demand is emerging, reflected in capital inflows and treasury company allocations, while also gaining promotion from Wall Street professionals.

3. Ethereum supply dynamics are more robust, monetary policy is strengthened, and the issuance is extremely low.

4. The proportion of ETH locked in smart contracts is increasing, and the trend of outflow from centralized exchanges is strengthening.

5. The rapid development of Layer 2 ecosystems reduces costs to attract more users and consolidates the EVM network effect.

Although current returns have declined, Ethereum is in a transition period. If product-market fit can be maintained, there is hope to further enhance value in the future by adjusting pricing strategies. The rotation of ETH prices may still be in the early stages and needs to be continuously observed and verified.