Ethereum Surpasses $4,300! Unveiling the Top Three Reasons for the Surge, and These Holding Stocks Are Worth Watching!

As the Second Largest Cryptos by Market Cap — — $以太幣 (ETH.CC)$ Successfully breaching the $4300 mark, the token has rallied more than 70% since July.

Noteworthy is that the ETH/BTC ratio reached a new high this year, signaling a marked reversal of market sentiment and a new round of expansion by Institutional Investors.

Not only does this ratio reflect the trend of the two currencies, it can also help traders to make a composite adjustment. Money may flow from Bitcoin to Ethereum and other cryptocurrencies when market risks are elevated. Conversely, BTC often becomes a safe haven when the market hedges. The ETH/BTC ratio is therefore a trend signal for market structural changes.

Former JPMorgan chief strategist Tom Lee said that the price comparison between Ethereum and Bitcoin (ETH/BTC) could return to 2017's 0.14. In the context of Bitcoin's innovation high, Ethereum's price is bullish and higher, reaching $16,000USD.

Interestingly, US President Trump's son Eric Trump called the Ethereum rally at X. Large investors are exploring plans for World Liberty Financial, a Trump family-backed company that intends to set up a listed company holding its WLFI token, Bloomberg reported on Friday.

What is the root cause of the solar storm? There are three main core principles: 1, Institutional Funds Entry 2, Stable Currency and RWA's common reputation for Chain Trade, 3 and the core technical advantage of Bitcoin.

1. Institutional Funds Entry Point

As of this year, Ethereum futures ETFs listed in the United States alone are estimated to have generated net inflows of more than $6.7 billion.

Beyond that, cryptocurrency holders — which are now shifting the focus of business to listed companies with large cryptocurrencies — are providing momentum for the rise of the cryptocurrency. According to strategicethreserve.xyz, these companies have around $13 billion worth of Ethereum stored today.

Current holdings of Ethereum in the Hong Kong and US equity markets and plans to establish an Ether Repository include: $Bitmine Immersion Technologies(BMNR.US)$ 、、 $SharpLink Gaming(SBET.US)$ 、 $Dynamix(DYNX.US)$ 、 $Bit Digital(BTBT.US)$ 、 $BTCS Inc(BTCS.US)$ 、 $GameSquare(GAME.US)$ 、 $Intchains Group(ICG.US)$ 、 $Exodus Movement(EXOD.US)$ 、 $BTC Digital(BTCT.US)$ 、 $IVD MEDICAL(01931.HK)$ 、 $Cosmos Health(COSM.US)$ 、 $Fundamental Global(FGF.US)$ 、 $180 Life Sciences(ATNF.US)$ 。

Currently, Bitmine Immersion Technologies and SharpLink Gaming are vying to become the first major Ethereum stock.

Among them, Bitmine owns 0.8331 million coins, making it the world's largest cryptocurrency enterprise. The company's investors include Wall Street Dark Market Observer, Fundstrat Global Advisors co-founder Tom Lee, who also joined Bitmine's board of directors and appointed chairman. It is worth noting that Peter Thiel, the founder of AI software company Palantir, bought 9.1% of BitMine shares through the Bid Funds. It is a good idea that this miner is moving from Bitcoin mining towards a large scale to the cryptocurrency. Timoto continues to Buy Bitmine and currently owns about 6 million shares.

While SharpLink Gaming currently holds 0.5219 million Ethereum coins, the company announced the creation of an Ethereum Fund at the end of May and nominated Ethereum co-founder Joseph Lubin as Chairman of the Board of Directors.

In a holistic view, Sean McNulty, Head of Asia Commodity Trading at Falconx Ltd, Digital Asset Brokerage Company Falconx Ltd, reveals that funds are flowing from Bitcoin to Ethereum, a one-time inflow of strong ETF funds, a growing use of corporate finance and a wider variety of stablecoins Volcano-driven giant extremity inversion.

2. The Perspective of Stable Currency and RWA in Link to Chain Trade

First is the stablecoin. In the macro landscape of the stablecoin market, Ethereum (including its main network and the Layer2 network) has always played an integral central role, the two forming a close symbiotic relationship.

Owing to its strong network effects, deep developer base, and mature ecosystem, Ethereum is the leading issuance and circulation platform for compliant stablecoins such as USDC, decentralized stablecoins such as DAI, and innovative stablecoins such as USDe.

Currently, Bitcoin contracts account for a large half of the US$260 billion Global Volatile Currency Market Cap, becoming the core facility for the coinage of Assets. Tom Lee pointed out that Bitcoin is the Blockchain Platform of Choice for Institutions due to Other Patterns, Compliance, and Realistic Assets (RWA).

The second is RWA. Utilization of all commodity on-chain RWAs driving Ether is expected to increase dramatically. As of August 6, the entire RWA is $8 billion in size, with the vast majority of RWAs choosing to chain on Ethereum.

The weighting project is driving the deep integration of the currency with real world financial assets. For example, BlackRock's BUIDL Funds are directly subordinated to the cryptocurrency, drawing a total value of over $2 billion (TVL) through on-chain messaging machines. At the same time, JPMorgan's Onyx license uses its Onyx license to test deposit coinage on the Bitcoin L2 network, which brings cash from traditional finance into the reference zone chain, rather than the money cycle that is driven solely by the hedge. This is a case in point that Bitcoin is successfully building a sustainable on-chain cash flow that will become the key infrastructure for connecting real-world Assets and regional blockchain technologies.

3. Core technical advantages of Ethereum

The core technology behind the price stress provides actionable support at a different value. In order to provide services to the holders of a new financial institution, three key requirements must be met at the same time: universal access, security of Institutions and decentralization.

Currently, Ethereum meets all three requirements, and there are currently no other alternative blockchain solutions that can meet all three requirements at the same time.

The security of the blockchain is the most important quality of assurance, and Ethereum aims to become Digital Petroleum, in conjunction with Bitcoin's Digital Gold, to form a balanced portfolio of Digital Assets.

As a whole, SwissBlock, the Swiss France-based Blockchain Research Institutions, expects this trend to continue, assuming ETH will be the market leader as the market leader as the market moves into a new cycle. However, investors should look forward to seeing the high levels of the cryptocurrency in the short term.