Discussing BTC, ETH and the 2 Major Reasons Why Altcoins Must Rise by Early 2025
In the cryptocurrency world, where expectations can often soar tenfold or a hundredfold, holding ETH is akin to losing half of a bull market. The incessant curses within the community echo worries that continuing to hold could mean bidding farewell to the entire bull market. So, does the second-largest cryptocurrency have a chance this time around? Can it skyrocket again?
Firstly, as the king of altcoins and the king of public chains, ETH's ecosystem is deeply rooted and widely spread across every corner of the crypto world. Although new forces like Solana, Sui, AVAX, and TON have shown impressive performances, ETH's status in various ecological niches such as DeFi, RWA, stablecoins, and NFTs remains unshaken.
Various whales and even Wall Street forces have a profound involvement in ETH, with many calculations already predetermined in the last cycle when other public chains didn't even have the qualification to carry its shoes. In other words, a large amount of capital and plans have already been strategically positioned, and the script for the rise has long been designed, waiting for specific conditions to trigger.
With the advancement of cryptocurrency, ETH is bound to have the first opportunity to benefit, enjoying a smooth ride, much like the current situation with spot ETFs where only BTC and ETH are present. Financial 2.0 will provide ETH with vast opportunities, as numerous institutions use ETH as the infrastructure to develop their own Web3 businesses.
Secondly, at present, the spot ETF policy for ETH does not allow staking, meaning users cannot earn staking rewards and still have to pay management fees, which has hindered a significant portion of capital inflow, making ETFs less attractive.
With Trump's return to power, it is highly likely that subsequent policies will allow ETFs to enable customers to earn staking rewards. Currently, the staking yield is around 4% annually, and as interest rate cuts progress, the attractiveness of ETH's spot ETF may even surpass that of BTC, allowing investors to enjoy the benefits of ETH's ecosystem growth while also earning interest passively. This will bring massive liquidity to the Ethereum ecosystem and even the entire altcoin market, potentially igniting the Ethereum-related ecosystem.