#Ethereum is a familiar name to crypto investors, and surely everyone more or less stores $ETH in their wallets with the goal of accumulating assets or paying transaction fees. For those who intend to invest $ETH or have already invested $ETH, it is very important to clarify why you should have $ETH in your investment portfolio.

Let's take a look at 4 reasons why you should have $ETH in your investment portfolio if you want to become rich in 2024-2025:

1. Gateway for cash flow into the market

Regarding the high level of liquidity and what this coin has proven, ETH is classified as a safe investment portfolio, second only to BTC.

=> This attracts not only institutional investors but also retail investors to know the crypto market. Currently, many countries have allowed the issuance of ETH ETF, which is almost a financial product that helps ETH get closer to Wall Street companies and traditional investors in the future. With a 1.1 trillion market, the amount of money pouring in from Wall Street can cause the market to grow strongly, and from there ETH will definitely benefit.

2. Economy on the Ethereum ecosystem

As you know, ETH is not only used as a fee, but also used in many activities on dApps in the Ethereum ecosystem. The dApp ecosystem on ETH is currently the largest in the market and almost outpaces other competitors.

Not only that, the emergence of Layer2 empires such as Arbitrum or Optimsm, zkSync, Starknet,... all use $ETH as gas fee. With these factors, the larger layer2 will help ETH expand the number of dApps. This contributes to the growing demand for using ETH for gas fees or activities.

=> This is the reason why ETH is deflated as mentioned in the next section.

The main trends emerging from the market also took place first on the ETH network, such as Memecoin, NFT, SocialFi, LSD or #RWA ... Typical examples include the trend of tokenizing assets. real-life assets (real estate, government bonds...) or ongoing Real-World Assets also always choose ETH as a technology platform that is safe, secure and decentralized enough to build these applications. . In fact, more than 50% of the revenue from the top DeFi protocol, MakerDAO, comes from the operation of RWA collateral assets.

3. ETH deflation

As you know, ETH is used to make Gas Fee or activities such as Lending, Yeild Farm,... The deflation mechanism is formed when a transaction is processed, a part of the transaction fee will be deducted. Burned completely on the ETH network according to proposal EIP-1559.

And with the amount of $ETH burned many times larger than the amount of $ETH created, $ETH becomes a deflationary token, pushing supply on the market to gradually decrease. As mentioned, if the dApp and Layer2 and Layer3 ecosystems become larger and larger, the demand for ETH increases and the supply decreases. Long-term supply < demand theory helps ETH price explode in the future. From the time of The Merge until now (more than 1 year), the total amount of $ETH burned (burned or removed from the total supply) has reached nearly 1,000,000 $ETH ~ nearly 1.7 billion dollars.

The total supply of ETH has since decreased to nearly 300k ETH even though the market entered a deep bear market. This is a very significant number. You can track these numbers at http://ultrasound.money.

4. Utility of $ETH makes $ETH an asset class

In addition to holding and profiting from price growth, ETH holders can also profit from activities such as: Staking, Lending, Yield Farming,... $ETH is widely used not only in the ecosystem. ETH status but also used for cross-border money transfers, by organizations using the underlying technology to build blockchain applications for their businesses.

Source: Theblock101.com