From layer-2 decentralized finance (DeFi) to artificial intelligence (AI) and decentralized physical infrastructure (DePIN), Ethereum, as a mature asset class, offers discerning investors a range of opportunities to enrich their investment options.
In just nine years, Ethereum has evolved from a pioneer in introducing on-chain smart contracts and programmatic cryptocurrencies to a key force in supporting decentralized finance and blockchain technology infrastructure. The approval of the ETH ETF by the U.S. Securities and Exchange Commission (SEC) marks an important milestone in Ethereum's development, an achievement that not only highlights Ethereum's status as a mature asset class, but also makes it a serious investment option that investors cannot ignore.
This article will focus on what I believe are the most promising areas within the Ethereum ecosystem that angel investors should pay special attention to in order to capitalize on current economic development trends.
Layer 2 Decentralized Finance (DeFi)
Ethereum laid the foundation for the birth of decentralized on-chain markets, giving birth to the global DeFi sector, which is now worth $104.55 billion. DeFi is like an intricate rabbit hole, containing unique financial mechanisms that traditional finance does not have. These mechanisms rely on the security, speed, and decentralization of Ethereum smart contracts. To solve Ethereum's scalability issues, second-layer network solutions such as Base, Arbitrum, and zkSync have emerged, which aim to reduce usage costs and speed up transactions without sacrificing user privacy and security. These advances have made Ethereum's technology more approachable and well suited for DeFi-related activities.
In the DeFi space, projects such as lending platforms, futures and perpetual contract trading platforms, tokenization and issuance platforms, and centralized and decentralized exchanges have achieved remarkable success. Even in a period when ETH only attracted a small number of market participants, these technologies have spawned diverse business models, demonstrating the widespread demand for DeFi solutions. The market capitalization of some of the top DeFi protocols has even reached billions of dollars, further confirming the strong strength and development potential of the entire DeFi industry.
As Ethereum is increasingly recognized as a standard asset, the potential for DeFi growth becomes more clear, making it an attractive and profitable area for angel investors to deploy capital.
Artificial Intelligence (AI)
As one of the most critical technologies of our time, AI has a far-reaching impact comparable to that of blockchain technology. Society is in urgent need of AI solutions that are both reliable and free from centralized control.
Blockchain technology provides a secure, confidential and decentralized infrastructure for AI services, which is essential to avoid monopolization of scarce computing resources and ensure broad accessibility of decentralized machine learning networks. Developers are using the Ethereum blockchain to carry out AI projects and are already building secure and decentralized AI services.
With the growing demand for decentralized, secure and reliable AI solutions, the combination of AI and blockchain technology has undoubtedly become an attractive investment hotspot. The market value of AI projects built on Ethereum has reached billions of dollars, which shows its huge growth potential and explosiveness to savvy investors. The recently passed ETH ETF is likely to become the fuse to stimulate a new round of growth in the industry.
Decentralized Physical Infrastructure (DePIN)
DePIN, a product of the miracle of blockchain technology, is an exciting emerging industry. It essentially combines physical infrastructure with decentralized digital network participants to enable global exchange of high-demand but limited-supply resources such as sensors, data storage or wireless connectivity, with the equivalent of cryptographic tokens.
DePINs bring a range of advantages to traditional and digital industries, including decentralized governance, peer-to-peer infrastructure sharing, and asset tokenization, while also improving security and protecting user privacy.
As the market demand for DePINs continues to rise, the trading market for these resources will also grow, which will not only drive up the value of related tokens, but also promote the expansion of the entire market. Ethereum, as the smart contract platform that supports the operation of DePINs, plays an indispensable role in this ecosystem. With the approval of the ETH ETF, it is expected to attract more angel investors to pay attention to the DePINs field. They are optimistic about the high return potential brought by DePINs and the far-reaching impact it may have on the real world.
ETH re-staking
Staking is a fundamental mechanism for securing decentralized networks like Ethereum, and it works based on economic game theory. Validators, who run nodes that support the blockchain, must stake ETH. If they follow the rules, they are rewarded; if they try to break the rules, their staked ETH is forfeited. Currently, more than $100 billion of ETH is staked, highlighting the importance of the staking mechanism in the operation of blockchain networks.
Restaking takes this concept a step further, applying the same game theory to secure any protocol on the blockchain. This allows smaller participants to achieve a high level of security through the Proof of Stake (PoS) mechanism that is difficult to achieve under traditional models. Restaking can build a more stable and resilient network for different protocols, making any attempt to attack any participant in the Proof of Stake pool very costly, thereby increasing the security of the entire network.
Liquid staking services further simplify the staking process, benefiting users who want to stake tokens without having to manage the complexity of validators. These services issue liquid staking tokens that accrue earnings and interest from validator rewards and can be traded or re-staked to generate more rewards. Developments in this area highlight its importance as a pillar of blockchain security, making it an attractive area to attract angel investors.
in conclusion
The approval of the ETH ETF is a sign that Ethereum has become a leading investment vehicle. The Ethereum ecosystem offers many exciting opportunities for angel investors, ranging from second-layer DeFi and AI integration to DePINs and re-staking.
It is critical to understand and research these industry sectors and their leading trends and growth catalysts. In this way, investors can make smart capital allocations while promoting Ethereum's growth. #以太坊ETF #加密货币 #天使投资 #资产配置
