The reason for ETH's long-term slump has one viewpoint: we are currently in a phase of changing hands, with major financial institutions on Wall Street becoming the new players, gradually taking over the chips from the previous wild players.
Written by: Yue Xiaoyu
ETH has been in a long-term slump, but we still need to give everyone a psychological massage.
The reason for ETH's long-term slump has one viewpoint: we are currently in a phase of changing hands, with major financial institutions on Wall Street becoming the new players, gradually taking over the chips from the previous wild players.
We can also verify this from the data: over the past year, the market share of the top 100 holding addresses has shown an upward trend, currently reaching 66%, especially after the approval of ETH ETF listings, there has been a significant increase.
This indicates that the concentration of ETH is actually increasing. Major addresses have been buying, yet the ETH price has not risen, what does this indicate?
On one hand, it shows that the big players have always been there and are continuously accumulating; on the other hand, it indicates that there is a lot of turnover in the market, not only are retail investors selling their chips, but also these major addresses are internally trading, which means changing hands.
It should be noted that ETH and BTC are the only two tokens with ETFs, and ETH has a significant advantage over BTC: staking rewards.
Once ETF staking rewards are opened or even re-staking, a risk-free return of at least 3% per year in terms of cryptocurrency is actually very attractive, especially compared to traditional financial products.
This is the untapped potential of ETH, and also the biggest potential benefit.
Naturally, traditional financial institutions will not miss out on this cake, and they have a strong willingness and motivation to become the new players in ETH.
However, ETH has already been the main narrative in two cycles of bull and bear markets, and naturally there are more long-term holders, which means the chips are more dispersed, so the turnover time for these chips will take a relatively long time and require sufficient washing.
Therefore, it is necessary to suppress the ETH price for a long time, forcing long-term holders to sell their chips, such as switching to popular SOL, so that the chips can concentrate in the hands of new big players.
Only after the new players have accumulated enough chips will there be the motivation to drive up the ETH price.
This is a grand scheme.
Therefore, do not discard the truly valuable chips in your hands, namely BTC and ETH. Surviving this long and painful washout is necessary to achieve the long-term returns you truly desire.
