The impact of Ethereum ETF
It is generally believed that the continued rise in ETH prices depends largely on the news of Ethereum ETF. With analysts saying that the probability of ETF passing has increased from 25% to 75%, the overall market sentiment is optimistic.
However, the SEC's decision is uncertain and may postpone the hearing to another date. If this happens, the market may become pessimistic, leading to increased pressure on ETH supply.
Therefore, investors should be cautious when buying based on rumors, as such sentiment may quickly turn into a wave of selling.
ETH ecological projects are about to explode: focus on these potential stocks
If ETH's ETF is successfully passed, not only will ETH itself benefit, but various projects in the ETH ecosystem will also usher in greater gains. Therefore, the following projects deserve special attention.
Layer2 projects
Arbitrum (ARB): Among all the projects with the highest TVL and the largest number of DApps, ARB has great potential. However, the recent unlocking pressure has increased, and the pull-up strength is weak.
Optimistic (OP): OP's advantages have formed an ecosystem composed of super chains of OP Stack, attracting a large number of excellent projects and capital. Historical data shows that OP's pull-up strength is usually stronger than ARB, which may be related to capital preference.
StarkNet (STRK): As a Layer2 project with the core of ZK, although its ecological construction and user volume are not as good as the first two, its circulating market value is relatively low. It has fallen after listing and has not rebounded like Yilu.
Metis: It was once a hot project, featuring a decentralized sorter. After listing on Binance, it has experienced a sharp correction, but it still has potential.
Manta: As a representative of Layer2 founded by the community, the team is very hard-working and the project is developing rapidly. The circulating market value is only 400 million US dollars, which is the lowest among all projects.
LSD project
Lido (LDO): LDO is the largest LSD protocol service provider, with the highest TVL in the entire network and a circulating market value of 2 billion.
SSV: As an infrastructure provider of circulation nodes, SSV has performed well recently and is worth paying attention to.
Prysm (PRL): Although it is not mentioned in the article, PRL is also a potential project in the LSD field and is worth mentioning.
ETH-collateralized stablecoins: potential analysis of ENA and LBR
Stablecoins are issued in different ways. One of the important ways is to issue them through collateral assets, and ETH is one of the most popular collateral assets.With the rise of LSD and Restake, project parties are able to use the ETH of collateral assets to obtain liquidity income, which makes these stablecoins have a natural income advantage.
Stablecoin issuance mechanism
Stablecoins based on the custodian's ETH can not only obtain liquidity income, but also increase income through token incentives and coinage such as dividends. For example, the project party can re-stake the custodian's ETH to obtain additional income, while providing incentives to users to achieve considerable annualized income.
ENA and LBR
LBR: LBR, which was popular in 2023, is a successful case of this model. LBR provides investors with stable income by mortgaging ETH and using derivative positions to stabilize its value.
ENA: The same is true for ENA, the Launchpool project on Binance this year. ENA not only uses hedge positions to maintain the value of collateral assets, but also further improves investment returns through innovative financial services and incentive mechanisms.
