Top Ten Core Reasons for Ethereum: Accelerated Path to Mainstream

The four major driving forces of regulatory friendliness, technological iteration, capital inflow, and improvement of the macro environment are paving an accelerated runway for Ethereum in the next 3 to 18 months.

1. Regulatory benefits and policy support

The U.S. regulatory stance has undergone a significant shift, with the new SEC chair supporting crypto innovation and withdrawing proposals against DeFi. The "GENIUS Act" and "CLARITY Act" provide a clear regulatory framework for stablecoins and crypto assets, reinforcing Ethereum's position as a settlement layer. These policy changes have greatly reduced regulatory risks and paved the way for institutional participation.

2. Institutional funds continue to flow in

More and more institutions are viewing ETH as a strategic asset. SharpLink Gaming acquired $463 million worth of ETH and staked it, becoming the "ETH version of MicroStrategy." The first ETH futures ETF has been launched, and a spot ETF is expected to be approved soon, which is likely to unleash billions of dollars in new demand. Institutions are considering ETH as a long-term investment and reserve asset.

3. Technical indicators turn positive

ETH has regained the weekly MA200, and the market structure has improved. The momentum indicators show that upward momentum is strengthening, with a potential bull flag pattern emerging. This indicates that ETH is in the early stages of a significant bullish reversal.

4. Continuous protocol upgrades

The Pectra upgrade has optimized Layer-2 performance, supporting new features such as account abstraction. Ethereum is gradually increasing gas limits, with the expectation of raising TPS above 60. Future plans include a complete integration of zero-knowledge proof technology to further enhance performance and security.

5. Favorable macro environment

The Federal Reserve is expected to shift to interest rate cuts in the coming months, which will make ETH staking yields higher than the risk-free rate. A loose monetary policy environment is favorable for crypto assets.

6. The scale of staking continues to grow

Currently, about 28% of the total supply of ETH is staked, reaching a record high. On-chain staking protocols like Lido and Ether.Fi are rapidly developing, and the future launch of staking ETFs may bring more institutional demand. Staking not only locks in supply but also provides stable returns for holders.

7. Layer-2 ecosystem is flourishing

Large companies such as Sony, Robinhood, and Coinbase have launched Ethereum-based Layer-2 networks one after another. The trading volume of L2 has surged, with new platforms like Base rising rapidly. This has driven more usage and fees back to the Ethereum mainnet.

8. Mainstream adoption acceleration

From the Trump family to European banks, an increasing number of traditional forces are beginning to adopt Ethereum technology. PayPal has launched an Ethereum-based stablecoin, and Visa is using Ethereum to settle USDC payments. Governments and enterprises around the world are also actively integrating Ethereum into their actual business operations.

9. The ecosystem continues to improve.

Vitalik continues to promote cutting-edge research such as ZK technology. The Ethereum Foundation is undergoing restructuring to optimize its governance structure. The newly established Etherealize organization focuses on connecting with Wall Street. The technical roadmap is also shifting towards the coordinated development of L1 and L2. All of these lay the foundation for the long-term development of Ethereum.

10. Strengthening Token Economic Model

The "ultrasound money" theory of Ethereum continues to play a role. The fee burn under EIP-1559 often exceeds the new issuance, leading to a net deflation of ETH supply during periods of high activity. The staking and burning mechanisms work together, making the supply and demand situation for ETH very bullish.

In summary, regulation, technology, capital, and macro factors are resonating together, driving Ethereum into a new stage of development. ETH is not only an opportunity for the future but also the most certain incremental asset at present.