ETH has been trading sideways for almost a month. Although it is uncomfortable to trade sideways, it is precisely because ETH is trading sideways that altcoins have the opportunity to explode.
However, this does not mean that ETH will always trade sideways. In the long run, there are currently 10 major bullish logics for ETH:
1. Low inflation:
Ethereum's annual inflation rate is less than 1%, which is lower than the inflation rate of other major Layer 1 (L1) competitors (such as SOL).
2. Strong development capabilities:
Ethereum has a strong developer community and accumulated intellectual support, which continues to drive innovation and growth in the ecosystem.
3. Top smart contract platform:
Ethereum is still the top smart contract platform, with a TVL (total locked volume) of 58%, and if all L2 platforms are included, it will reach about 65%.
4. Regulatory certainty:
Ethereum and Bitcoin (BTC) are not considered securities. The clarity of regulation has enhanced market confidence and paved the way for the entry of institutional investors.
5. Stablecoin dominance: More than 50% of the stablecoin supply is issued on the Ethereum network.
6. Leading in RWA (Real World Asset) issuance:
Ethereum leads in tokenized U.S. Treasury issuance, with a total of $1.9 billion.
7. Modular expansion:
Although L2 expansion schemes have liquidity fragmentation and user experience issues, they provide scalable growth space, allowing Ethereum to adapt to market changes in the long term.
8. Upcoming upgrades:
The upcoming Pectra upgrade will improve user experience and make development smoother and more efficient.
9. Strong network effects:
Ethereum's network effects come from its early leading position, large developer community, mature DeFi ecosystem, institutional adoption and strong security.
10. Potential of ETH ETF:
Although the current flow is low, the ETH ETF may attract a large inflow of funds when the market turns bullish.
