During Devcon 8, Vitalik published a long post that officially shifted the core valuation logic of $ETH toward “store of value” and underlying collateral. The “ultrasound money” and deflationary burn narratives that the community had emphasized repeatedly over the past three years have essentially come to an end. The cash-flow models celebrated during the previous bull market relied entirely on high-frequency on-chain leverage and speculative activity that burned through gas. But now Layer 2 has drained most of the mainnet’s transaction volume and fees, leaving the original burn mechanism all but dead. In response to this shift, institutions have already begun to act: Tom Lee’s Bitmine has taken the opportunity to add another $20 million, bringing its holdings to 6.07 million $ETH (nearly 5% of the total supply). Staking rewards alone could bring in a steady $309 million a year.
My view is that Ethereum faces a very difficult road ahead. Stop fooling yourselves with the old logic that deflation will drive a massive price surge. Without mainnet fee revenue to support it, $ETH has no choice but to pursue a pure collateral and store-of-value narrative. The key question now is whether Wall Street will buy into its role as an “underlying yield-bearing collateral asset.” The market may go through a prolonged period of valuation reassessment. Ordinary investors should avoid blindly chasing prices or using high leverage during this period, and instead pay close attention to institutions’ willingness to absorb the supply.
As the narrative shifts from a deflationary asset to pure collateral, do you think institutions will keep adding to their positions or gradually exit?
#ETH #以太坊
My view is that Ethereum faces a very difficult road ahead. Stop fooling yourselves with the old logic that deflation will drive a massive price surge. Without mainnet fee revenue to support it, $ETH has no choice but to pursue a pure collateral and store-of-value narrative. The key question now is whether Wall Street will buy into its role as an “underlying yield-bearing collateral asset.” The market may go through a prolonged period of valuation reassessment. Ordinary investors should avoid blindly chasing prices or using high leverage during this period, and instead pay close attention to institutions’ willingness to absorb the supply.
As the narrative shifts from a deflationary asset to pure collateral, do you think institutions will keep adding to their positions or gradually exit?
#ETH #以太坊
