After several days of market correction, the price of ETH has risen above $3,900, briefly breaking through $4,000 but failing to stabilize. This price point, however, contains new market trends.
Looking back over the past year, Ethereum's development journey has been extremely complex: the successful Cancun upgrade and the official approval of Ethereum spot ETFs have laid a new bullish outlook for technology and fundamentals; however, at the same time, Bitcoin, Solana, BNB, and other public chains have broken through historical highs, while ETH still hovers around the $4,000 mark, reflecting the market's new expectations and challenges for Ethereum.
From this year's ETH price chart, it can be seen that Ethereum's rise has gone through three key phases, each driven by different market factors:
At the beginning of the year: spurred by the approval of the Bitcoin spot ETF, market sentiment for Ethereum soared, with prices briefly exceeding $4,100;
May: The Ethereum spot ETF was approved, but demand fell short of expectations, leading to capital outflows in the market;
November: Trump's victory, the warming of U.S. policy direction, and the return of institutions and liquidity to the market, leading to the third wave of ETH's increase.
This round of increase is different from the past; the clear signals of institutional entry and the improvement of liquidity fundamentals signify that ETH is entering a new era—an institutional era.
Improvement of liquidity fundamentals: The clarion call for institutional entry
Since December, the inflow momentum of Ethereum spot ETFs has been significant, with net inflows exceeding $2.2 billion for half a month, indicating a growing interest in ETH among investors. Financial giants like Morgan Stanley, JPMorgan, and Goldman Sachs have not only significantly increased their positions in Bitcoin ETFs but have also gradually ventured into Ethereum spot ETFs, indicating a clear consensus among institutional capital regarding ETH's growth potential.
Notably, there are signals from low-risk, long-term investors such as U.S. pension funds:
These data and dynamics fully demonstrate that institutional capital not only recognizes ETH's role as a 'world computer', but is also gradually participating in ETH staking and ecosystem development. The return of institutional funds has injected new momentum into the price and ecological development of ETH.
The warming of U.S. policy: Trump's new crypto policy
U.S. regulatory policy has long been a core variable in the crypto market, and Trump's victory marks a significant reversal in policy direction.
Trump appointed a series of tech and financial giants to key positions, signaling a clear message of relaxed regulation;
Stalled cryptocurrency bills such as the Financial Innovation and Technology Act of the 21st century (FIT21) are expected to be approved quickly, providing regulatory clarity;
The enforcement strategies of the SEC and CFTC will be more collaborative, reducing market panic and litigation risks.
Policy dividends are gradually being released, attracting larger institutional funds to the crypto market, while also bringing new recovery opportunities to the Ethereum ecosystem.
DeFi revival: The Ethereum ecosystem welcomes new growth points
The return of institutional funds not only promotes the development of Ethereum spot ETFs but also brings new growth opportunities to the DeFi sector.
The supply of stablecoins has reached a historical high, with nearly $25 billion added within a month after Trump's victory, reaching a total market value of $202 billion;
Established DeFi projects such as Uniswap, Aave, and Lido saw their prices rebound rapidly after the policy easing, with TVL (total value locked) and revenues experiencing explosive growth simultaneously;
Capital giants represented by BlackRock have made a high-profile move into RWA (real-world asset tokenization), promoting the diversification of the DeFi ecosystem.
The proportion of capital in the DeFi market remains low, accounting for only 2% of the total cryptocurrency market value, indicating that the DeFi sector has significant growth potential in the next bull market.
The future of Ethereum: the 'world computer' for institutions
Over the past year, with the rise of emerging public chains such as Solana, the Ethereum ecosystem faced capital outflows and user loss. However, the return of institutional funds and the maturity of the market are reshaping Ethereum's long-term vision.
Ethereum's core advantages lie in its:
Security: Ethereum's decentralization and stability make it the preferred choice for institutions;
Compatibility: The compatibility of the EVM ecosystem can meet the needs of different developers and enterprises;
Scarcity of block resources: In the long term, the actual demand for Ethereum's block resources will gradually increase, driving up the value of ETH.
The strategic direction for Ethereum's future is becoming increasingly clear: just as Bitcoin is positioned as 'digital gold', and Solana as the 'Nasdaq on-chain', Ethereum must focus on its 'world computer' guiding star goal. Only by clarifying this goal can Ethereum continue to lead the development of the decentralized economy.
Over the past decade, Ethereum has successfully established its core position in the crypto market through smart contracts and the DeFi ecosystem. In the next decade, the push from institutional funds and policy dividends will bring new growth momentum to Ethereum. From spot ETFs and DeFi revival to the explosion of the RWA track, ETH will not only be a core choice for institutional capital but will also play an increasingly important role in the global financial system.
The future of Ethereum is now clear: it will be the 'world computer' for global capital and innovation, ushering in the next prosperous era of the crypto economy.