Ignas: Top 10 Reasons for Bullish Outlook on ETH

Do you find the cryptocurrency market a bit boring lately? Especially with the weakness of Ethereum becoming unbearable? Let cryptocurrency analyst Ignas tell you the top ten reasons to be bullish on ETH.

Low Inflation

Despite the very low gas fees, the annual inflation rate of ETH is less than 1%. In comparison, the inflation rate of other major L1 competitors is higher, for example, SOL is around 4%, and it is expected that a large number of VC unlocks for most L1 projects like SUI, APTOS, etc., will occur in the coming years.

Development Capability

The strong developer community and accumulated talent in the Ethereum ecosystem support continuous innovation and growth in Ethereum. The table below shows that the number of full-time developers in the Ethereum ecosystem is significantly higher than other public chains.

Ethereum as the Top Platform for Smart Contracts

When all L2 solutions on Ethereum are combined, Ethereum still remains the top platform for smart contracts, with TVL accounting for 58% of the total, much higher than Tron's 9.01% and Solana's 5.93%.

Regulatory Certainty

As Bitcoin and Ethereum spot ETFs have been approved for listing by the U.S. Securities and Exchange Commission (SEC), it can be certain that BTC and ETH are not securities, but there are still concerns regarding SOL.

The future of Solana ETF is uncertain, and the exchange Cboe has withdrawn its 19b-4 application.

Both the U.S. and the EU are trying to establish clearer regulations that can open the door for participation by institutions like BlackRock.

Dominance in Stablecoins

Over 50% of the stablecoin supply is issued on Ethereum.

Leading Position in RWA for Ethereum

Of the total $19 billion tokenized U.S. debt issued, $13 billion is issued on Ethereum.

Modularity

L2 solutions have faced criticism due to fragmented liquidity and poor user experience. However, L2 offers scalable growth, providing Ethereum with enough flexibility. Additionally, the issue of cross-L2 interoperability may be resolved faster than expected.

Pectra Upgrade

The upcoming Pectra upgrade will bring improvements to user experience, making development smoother and more efficient.

Network Effects

The strong network effect of Ethereum comes from its early leadership position, large developer community, mature DeFi ecosystem, institutional adoption, and robust security, making Ethereum the preferred platform for dApp builders.

Ethereum Spot ETF

Although the current flow of Ethereum spot ETF is low, when the market turns bullish, a significant influx of capital may occur. Institutions have not entered the market yet, but if they want to, they will find a way!

Ignas humorously explains one important reason why he is bullish on ETH, because the recent movement of ETH has been too burdensome for him, making him despairingly want to share these optimistic thoughts with his followers! It remains to be seen if readers agree with Ignas' views!