Analysts explained the reasons for the price of Ethereum prices

Bernstein analysts identified three main factors that led to Ethereum growth by about 60% per month. About this writes The Block.

Specialists of the brokerage company noted that the ratio of the ETH/BTC pair over the past year fell by 45% amid the dominance of bitcoin as a means of savings and an asset for corporate reserves. Retail flows have moved to faster and more cheap L1 networks like Soolana.

Ethereum “got stuck somewhere in the middle” as not the best storage of cost and not the most convenient platform for speculation, analysts, led by Gautam Chkhugani.

According to them, the situation began to change, and three factors had the main influence:

• boil of steablecoins and tokenization;
• instructive L2-solutions;
• Closing short positions in Ethereum.

The blockchain of the second in capitalization of cryptocurrency accounts for about 51% of the total volume of “stable coins”. Buying the Stable Cablecoin platform Bridge for $ 1.1 billion and the META statement about the possible integration of assets on their platforms helped return attention to basic networks.

According to FT experts, global banks and fintech companies have already joined the “Steblcoin race”. The capitalization of the market leader – Tether USDT – exceeded $ 150 billion, and the US Testament Ministry of Finance predicts the achievement of $ 2 trillization segment by 2028.

Ethereum is the main beneficiary of this growth as the main proxy platform for “stable coins”, Bernstein analysts believe.

Blockchain also dominates the RWA sector – the volume of tokenized assets of the real world is already estimated at $ 22 billion. Deloitte has allowed a surge in the indicator up to $ 4 trillion in the next 10 years.

Bernstein experts also noted that the Ethereum ecosystem L2 like BASE play an increasingly significant role as crypto-infrastructure for institutions. The acquisition of the Robinhood platform Wonderfi, which controls its own second-level protocol, will allow the online Broker to offer the trading of tokenized shares on its own chain.

Since L2-solutions use ETH as a gas token and a calculation tool, this helps to stimulate the demand for cryptocurrency, analysts added.

The third factor of the recent Ethereum rally, they called partly tactical. Over the course of the year, the institutional players actively used a coin in the Delta-Nine-Gid Head Strategy-maintaining Longs in BTC and SOL and short positions in ETH. As the narratives change, it has become more difficult for investors to determine the asset as a “lagging behind”, Bernstein experts noted.

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