$ETH

Why has ETH been in a prolonged slump?

One viewpoint on the reason for ETH's long-term slump is that it is currently in a transition phase, with major financial institutions on Wall Street becoming the new market makers, gradually taking over the chips from previous market manipulators.

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's ETFs, there has been a significant increase.

This indicates that the concentration of ETH is actually increasing. The leading addresses have been buying, but the price of ETH hasn't risen, what does this mean?

On one hand, it shows that the market makers are still present and continuously accumulating, on the other hand, it indicates that there is a large amount of turnover in the market, not only are retail investors losing their chips, but these leading addresses are also exchanging chips internally, essentially changing market makers.

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 the ETF starts offering staking rewards or even re-staking, an annual risk-free return of at least 3% in currency terms is actually very attractive, especially compared to traditional financial products.

This is the untapped potential of ETH and also the biggest potential positive factor.

Naturally, traditional financial institutions will not miss out on this opportunity and have a strong willingness and motivation to become the new market makers of ETH.

However, ETH has already been the main narrative in two cycles of bull and bear markets, so there are naturally more long-term holders, and the chips are more dispersed, which means that the turnover of these chips will take a relatively long time and will require thorough washing of the market.

Therefore, it is necessary to keep suppressing the price of ETH so that previous long-term holders will discard their chips, for example, by shifting to popular options like SOL, to concentrate the chips into the hands of the new market makers.

Only after the new market makers have sufficiently accumulated chips will there be the motivation to drive up the price of ETH.

This is a deliberate strategy.

So, do not discard the truly valuable chips in hand, namely BTC and ETH. Enduring this long and painful market washout is essential to achieve the long-term gains you truly desire.