Ethereum has been overly FUDed, and there is a need to rediscover its existing value.
Written by: Haotian
The recent significant rise in Ethereum ($ETH) has led many to question whether it is related to the recent Pectra upgrade. The answer may not be so straightforward.
The Pectra upgrade is more like the "finishing touches" of the Cancun upgrade, primarily involving some underlying optimizations and refinements rather than groundbreaking technological innovations.
From a technical perspective, the four EIPs included in the Pectra upgrade all point in the same direction: making Ethereum run more stably and efficiently. EIP-7044's standardization of state expiration, EIP-7524's redefinition of fuel limits, EIP-7697's optimization of transaction pipelines, and EIP-6789's improvements in difficulty adjustment—these are all typical "patch-up" upgrades that address some marginal issues left over from the Cancun upgrade.
The real logic behind the price movement of Ethereum is actually the "value repair" after being excessively FUDed.
In the past few months, Ethereum has indeed faced a round of concentrated scrutiny: the dispersion of layer2 liquidity has been exaggerated into an ecological split, comparisons with Solana's performance have been interpreted as a failure of the technical route, and the expansion of various layer2 ecological applications has fallen short of expectations. The narratives around Restaking, modularity, zk, and other technologies have not been able to capture value, among other concerns.
When all the focus was on Ethereum's issues, people overlooked some key facts: the total locked value in DeFi remains stable at $119B, the Cancun upgrade has significantly reduced layer2 costs, ETF inflows continue to strengthen, and new narratives like RWA and PayFi are primarily developing within the Ethereum ecosystem.
The fundamentals of Ethereum are not as bad as market sentiment reflects.
Institutional investors have clearly seen through this emotional imbalance. A typical example is Abraxas Capital's massive purchase of 242,652 ETH (approximately $561 million). Moreover, during the period from May 9 to 14, large ETH transfers (over $1M) also significantly increased, and the ETH balances of institutional wallets have noticeably grown, indicating a planned large-scale accumulation by institutions.
So, if one must find a logic for this round of Ethereum's rise: Ethereum has been overly FUDed, and there is a need to rediscover its existing value, while institutions have seized the opportunity to buy the dip?
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
