Recently, many people have asked me, 'Is there still a chance for Ethereum?' Some fans even said, 'Ethereum is not moving up now, should we switch to other assets?' As a staunch believer in Ethereum, I must make it clear: Ethereum not only has a chance, but is also in a phase of being severely undervalued! Tom Lee mentioned in a speech that Ethereum in 2025 is experiencing its own '1971 moment,' and my view is more direct: in the next three years, the increase in Ethereum may far exceed that of Bitcoin.
Let me first explain what the '1971 moment' is. In 1971, the Bretton Woods system collapsed, and the US dollar decoupled from gold. Wall Street created countless financial products to maintain the dollar's reserve status. Now, faced with the tokenization wave of all assets such as stocks, bonds, and real estate, Ethereum has become Wall Street's preferred platform. This means that Ethereum is upgrading from a 'crypto asset platform' to 'global financial infrastructure,' and its value is severely undervalued.
The first core logic of Ethereum being undervalued: the core carrier of the tokenization wave.
Tom Lee pointed out that almost all mainstream financial institutions are building products on Ethereum, and the vast majority of RWA tokenized products appear on Ethereum. With the popularity of tokenization, Ethereum's trading volume and transaction fee income will continue to grow. According to a16z's data, Ethereum and its layer 2 networks have become the preferred destination for new developers, and the prosperity of the developer ecosystem will further drive Ethereum's development.
The second core logic: the maturity of the staking ecosystem.
As a PoS blockchain, Ethereum's staking ecosystem is gradually changing the traditional roles on Wall Street. These staking treasury companies are essentially crypto infrastructure businesses that provide security for the network through Ethereum staking while earning staking rewards as a source of income. Strategy, ranked 17th in trading volume on the US stock market, has a daily trading volume of nearly $4 billion, surpassing JPMorgan, which is enough to demonstrate the market's recognition of Ethereum's staking ecosystem.
The third core logic: the explosion of layer 2 networks.
The high transaction fee issue of the Ethereum mainnet is being addressed by layer 2 networks. The transaction fees of layer 2 networks such as Arbitrum and Optimism are only 1/10 of those on the Ethereum mainnet, and their throughput far exceeds that of the mainnet. With the popularity of layer 2 networks, the number of Ethereum users and transaction volume will see explosive growth. Currently, the daily active users of layer 2 networks have surpassed ten million, and this number will continue to increase in the future.
How should retail investors position themselves in Ethereum? My strategy is "core assets + ecological layout." First, hold Ethereum spot in the long term, which is the most stable choice. Second, invest in quality projects on the Ethereum layer 2 network, such as DeFi projects on Arbitrum and NFT platforms on Optimism, as these projects will enjoy the dividends of the layer 2 network explosion. Finally, pay attention to Ethereum's upgrade dynamics, such as the recently completed Fusaka upgrade, as these upgrades will continuously enhance Ethereum's performance and security, further driving its value upward.
Many people are concerned, "Will Ethereum be surpassed by other public chains?" My answer is: very unlikely. Ethereum's developer ecosystem, user base, and institutional support are unmatched by other public chains. Although public chains like Solana are developing rapidly, their positioning is more of a "supplement to Ethereum" rather than a "replacement." In the next three years, Ethereum will achieve another leap in value driven by tokenization, staking ecosystem, and layer 2 networks. I will share specific layout opportunities in the Ethereum ecosystem later, follow me @链上标哥 to avoid getting lost! I will help you seize this undervalued giant.
