The reason for ETH's long-term stagnation is that there is a viewpoint: we are currently in a phase of changing hands, where major financial institutions on Wall Street are becoming the new players, gradually taking over the chips from the previous wild players.

Written by: Yue Xiaoyu

ETH has been in a long-term slump, and we need to provide some psychological comfort.

One viewpoint on the reason for ETH's long-term stagnation is that we are currently in a phase of changing hands, where major financial institutions on Wall Street are becoming the new players, gradually taking over the chips from the previous wild players.

We can also verify this from the data: over the past year, the market share of the top 100 holding addresses has shown an upward trend, currently reaching 66%, especially after the approval of the ETH ETF, which saw a significant increase.

This indicates that the concentration of ETH is actually increasing. The leading addresses have been buying, but the price of ETH has not risen, which indicates what?

On one hand, it shows that the players are still present and are continuously accumulating; on the other hand, it indicates that there is a large amount of turnover in the market, not only are retail investors offloading their chips, but this group of leading addresses is also exchanging hands internally, which means a change of players.

It is important to note that ETH and BTC are the only two tokens with ETFs, and ETH has a significant advantage over BTC: staking rewards.

Once the ETF opens up staking rewards or even re-staking, a risk-free yield of at least 3% per year in terms of coins is very attractive, especially compared to traditional financial products.

This is the untapped potential of ETH and also the biggest potential benefit.

Naturally, traditional financial institutions will not miss out on this opportunity and have a strong willingness and motivation to become the new players of ETH.

However, ETH has already been the main narrative through two rounds of bull and bear markets, so there are naturally more long-term holders, and the chips are more dispersed. Therefore, the turnover of these chips will take a considerable amount of time and requires sufficient washing out.

Thus, to long-term suppress the price of ETH, it is necessary to make the previous long-term holders offload their chips, for example, by switching to popular options like SOL, in order to concentrate the chips into the hands of the new players.

Only after the new players have accumulated enough can there be the motivation to drive up the price of ETH.

This is a deliberate strategy.

Therefore, do not offload the truly valuable chips in your hands, namely BTC and ETH. Enduring this long and painful washing out is essential to achieve the long-term returns you truly desire.

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