ETH's ETF has finally been successfully launched. Why can Ethereum's ETF maximize the stimulation of the altcoin market?

First of all, we need to know that the net inflow of funds into BTC ETF has exceeded 17 billion US dollars, which directly promoted the rise of BTC and the progress of the bull market, but it did not present the market and atmosphere of the bull market in 2017 and 2021.

The core reasons are:

1. BTC ETF inflows helped Bitcoin prices rise, but this did not really benefit the entire market.

2. Most of the investors who hold BTC are institutions and large investors who do not need to make profits through altcoins, so they are unlikely to use the new wealth profits brought by the rise in BTC prices to invest in other altcoins.

3. The lack of a new real historical high has not really attracted retail investors back to the market. The new high of 7w has indeed been boosted by internal and external heat, so it is not very attractive to retail investors. Now with the blessing of the traffic president, combined with the new high of 8-10k, it will activate off-site traffic to enter the market.

So how is this different from an ETH ETF?

The inflows into the ETH ETF are very different and have the potential to kick-start a self-reinforcing positive feedback loop!

1. The inflow of funds into ETH ETFs drives up the price of ETH

2. ETH price increases directly increase the USD value of TVL in DeFi protocols

3. Increased TVL leads to increased fees/yields for native DeFi altcoins

4. Fees/yields on DeFi altcoins increase, boosting their fundamental value and price

5. This has reignited interest in DeFi, prices have risen, people have launched new tokens, and new liquidity mining activities have begun

6. This will lead to more ETH being purchased and locked in smart contracts, greatly increasing the activity on the chain

7. The increase in on-chain activity will drive the destruction of ETH and the increase in the pledge rate, thereby driving up its fundamental value

8. As ETH price surges from funds flowing into ETFs, existing crypto-native ETH holders are more likely to rotate and gamble on altcoins, adding fuel to the fire.

9. TradFi's active addresses, destruction volume, and fundamentals have all improved, further attracting a steady flow of funds into the ETH ETF

The second half of the bull market is the time for copycats to truly perform. The stage is set, waiting for the opening. #ETH #BTC