On January 1, 1confirmation founder Nick Tomaino posted on X that, "We support Ethereum because we care about the truth and want you to succeed, despite what some people on X might say. Regardless, Ethereum will exceed 10,000 USD. The reality is:
The best cryptocurrency developers are still building on Ethereum, as they have for more than seven years. Layer 2 solutions, like Base, attract developers. DeFi, NFTs, Stablecoins, prediction markets, decentralized social networks, and many other platforms prioritize Ethereum, with breakthrough potential applications in areas such as gaming, payments, AI agents, X-to-earn, and other fields expected to emerge from here.
Early access to new use cases brings powerful network effects and protection. When a new use case succeeds on Ethereum, other chains will mimic it. Taking NFTs and Stablecoins as examples, Ethereum's dominance in these two areas is undeniable.
On-chain usage brings value to ETH holders, as ETH has an excellent monetary policy. Transaction fees are burned, so when usage increases, if the amount of ETH burned exceeds the staking rewards, the supply will decrease. Bitcoin has a simple digital gold story, recognized by institutions: a total of 21 million by 2140. While Ethereum's scarcity story may not be immediately obvious on the surface, it is just as strong in reality.
The monetary distribution of ETH is currently taking place at both the institutional and grassroots levels. In the last five months of 2024, the inflows into ETH ETFs are very strong, but are predicted to accelerate in 2025 as Wall Street gains a deeper understanding of ETH, and ETFs also begin staking. Meanwhile, the development of upcoming L2 and L3 applications will strongly drive the adoption of ETH as a currency at the grassroots level.
