Ethereum has been unexpectedly strong during this period, with a stronger rise than Bitcoin and SOL. Can Ethereum rise again and take over the bull market and lead a new wave of market? Jason, an analyst at StarEx Exchange, believes that the trend is already very clear.
In every bull market cycle, Bitcoin is always the first "pioneer asset" to detonate the market, followed by Ethereum and altcoins. However, in the past two years, Ethereum's limelight has been taken away by the meme coin trend brought by Sol, and its performance has been extremely weak. However, with the evolution of the market structure since the end of 2024, we are standing at the starting point of a new cycle. This time, it is Ethereum's turn to become the protagonist and lead a new chapter in the crypto bull market.
ETF fund flows reversed: Bitcoin outflows, Ethereum inflows
During this period, Bitcoin spot ETFs began to quietly enter the outflow phase, while Ethereum spot ETFs continued to inflow in the past month. In the eyes of institutions, Bitcoin above $100,000 may not be as cost-effective as Ethereum, so they switched part of their funds to seek higher returns. Jason, an analyst at StarEx Exchange, believes that the redistribution of funds is a precursor to a fundamental change in the bull market structure.
“Alt Season” and the Rule of Thumb for Bitcoin’s Dominance Rate
Looking back at the starting point of the "altcoin season" in the past bull market, it was always after the Bitcoin dominance rate peaked and fell back. At present, this sign is emerging. As the ETH/BTC trading pair rebounded from the decline, the market's attention to Ethereum and trading activity quickly rebounded. This is not only a price phenomenon, but also a signal that structural funds are looking for the next stage of leading assets.
Positive policies: DeFi fits in with the American spirit
At a recent roundtable meeting, the theme of the meeting, "DeFi and the American Spirit," resonated widely. Freedom, innovation, private property rights - the core values of the American founding spirit are highly consistent with the DeFi movement in the Ethereum ecosystem.
The US SEC's recent softening of its stance on PoS staking and self-custody sends a positive signal. For example, US SEC officials have made it clear that miners, validators, or "staking as a service" providers are not subject to securities law regulation. At the same time, the US SEC is studying the "innovation exemption" framework, which may open the door to legalization for DeFi and on-chain finance.
This not only clears up regulatory uncertainty for Ethereum from a legal perspective, but also illustrates from a spiritual level that the “on-chain finance” movement represented by Ethereum is essentially returning to the origin of American-style capitalism.
RWA and institutional entry: Ethereum is the preferred platform for connecting traditional finance
Jason, an analyst at StarEx Exchange, believes that the next evolution of DeFi is RWA (real world assets). This will unleash the huge potential of Ethereum. Unlike Bitcoin, which is mainly regarded as a safe-haven asset, Ethereum has complex smart contract functions and is a natural platform for hosting, trading, and settling RWA assets. Traditional financial institutions such as the United States are also deploying native chains through ETH: whether it is bond tokenization, fund chaining, or the construction of an on-chain settlement system, all roads point to Ethereum. In particular, the recent official listing of Circle, the parent company of the second largest stablecoin USDC, has ignited the enthusiasm of American institutions for RWA. Stablecoins have the potential to reach $2 trillion in the next few years, which is 10 times the current level.
This is why we see the “Ethereum version of MicroStrategy” quietly unfolding in the U.S. stock market—more and more listed companies are choosing to buy ETH or participate through enterprise-level staking services.
Market turning point in the context of institutional change: fiscal loss of control and the inevitable rise of decentralized finance
Jason, an analyst at StarEx Exchange, believes that we are in an era where the fiscal deficit train can no longer be stopped. When the Fed's interest rate hikes are no longer effective in curbing deficit expansion, gold and Bitcoin prices are decoupled from real interest rates, and the US government debt exceeds the growth rate of private sector credit...all of this indicates that traditional finance is facing a fundamental institutional dilemma.
DeFi is no longer just a "speculative game", but a counterattack against the limits of the centralized financial system. ETH is not just a digital asset, it is the base currency of the on-chain financial system. Just as the free United States needs a financial system that is not interfered with by power, DeFi also needs an uncensored, stable and scalable underlying platform - that is Ethereum.
At this moment, the crypto market has moved from Bitcoin's "monetary narrative" to Ethereum's "institutional narrative". This is the natural evolution of the bull market. When capital flows, regulatory environment, technical narratives and institutional configurations all turn to Ethereum, it means that a new round of bull market has begun, and the future crypto-financial order will be built around Ethereum.
This time, it is Ethereum’s turn to be the leader of the bull market.
