The wave of encryption assets is reignited, and Ethereum may become the new darling of Wall Street.

Wall Street is迎来 a new wave of encryption craze. The growth narrative in traditional finance has become fatigued, with excessive investment in artificial intelligence, and software companies are less attractive than in the past. Growth investors are facing difficulties, with most AI stocks being overvalued and other growth opportunities scarce. Former tech giants are also gradually shifting towards quality and profit-focused stable stocks.

Currently, the median enterprise value/revenue multiple for software companies has fallen below 2.0 times, reflecting the market's cautious attitude towards this sector.

Encryption assets back in the spotlight

Bitcoin has broken through historical highs, and with the improvement of the regulatory environment, encryption assets have once again become the focus of the market. Unlike in 2021, this wave is concentrated on aspects such as digital gold, stablecoins, "tokenization," and payment innovations. Several well-known fintech companies have listed encryption business as a growth priority, and a certain cryptocurrency exchange platform has even entered the S&P 500 index, highlighting the enormous potential of the encryption industry.

Ethereum's Unique Advantages

For native crypto players, the competition among smart contract platforms is fierce, and Ethereum faces many challenges. However, Wall Street investors may have a limited understanding of the competitive landscape. They place more importance on Ethereum's long-term stability, market position, and liquidity advantages.

Ethereum is the second cryptocurrency asset to have a spot ETF after Bitcoin, which is highly attractive to traditional investors. In addition, Ethereum's dominant position in the stablecoin market and the support from several well-known trading platforms have enhanced its investment value.

Institutional Funds Influx

Despite the cautious attitude of the encryption community towards Ethereum, data shows its performance remains strong. Year-to-date, the exchange rate of a competing public chain against Ethereum has fallen by nearly 9%, while Ethereum's market capitalization ratio has shown an upward trend since mid-2023.

This contrast may stem from the entry of new buyers. Since March, the inflow of funds into Ethereum spot ETFs has continued to increase. At the same time, some institutional investors have begun to mimic Bitcoin investment strategies, introducing structural leverage into the market. Even some crypto-native investors may realize their under-allocation to Ethereum and begin asset rotation.

Future Outlook

External investors are reshaping the market perception of ETH assets, challenging the cryptocurrency community's inherent impression of "only falling and not rising." As short positions are gradually being liquidated, native crypto capital may follow this trend, further driving market speculation enthusiasm.

If this situation continues to develop, the possibility of Ethereum reaching a new high will greatly increase. However, it is worth noting that the performance of ETH as an asset may become disconnected from the actual development of the Ethereum network. Investors need to carefully assess risks and pay attention to long-term development trends when participating in the market.