Ethereum, the second most popular blockchain by its market capitalization, has been relatively less highlighted in 2024. For example, while Bitcoin rose 141% year to date and Solana jumped 104%, Ethereum’s 66% gain over the same period was lackluster.
As of December 19, 2024, ETH price stands at $3,683. However, recent trends and strategic shifts suggest Ethereum may be poised for a major comeback in 2025.
Ethereum has solved the early issue of slow and very expensive transactions in the network. Other layer-two protocols such as Base, Optimism, and Arbitrum have accelerated and made the network cheaper.
Such solutions provide the Ethereum ecosystem with enhancements that are beneficial to developers to build projects.
According to Matt Hougan, the CEO of Bitwise, Ethereum will overtake Solana in the next year due to its accessibility and scalability. Ethereum is becoming a favorite for institutional investors because of better accessibility and lower transaction costs.
Renewed Investor Interest in Ethereum
In recent weeks, there has been a noticeable shift in investor sentiment. According Juan Leon, senior investment strategist at Bitwise Asset Management, spot ETH ETFs saw $2bn in net AUM inflows in the last 10 days.
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This is a significant increase compared to the $250 million inflows recorded in the preceding four months. Leon links this revival to Ethereum’s centrality in the rapidly expanding market of digitally tokenized real-world assets (RWAs).
To back his statement, Leon explains that Ethereum has the biggest concentration of tokenization with 81% of the market at the moment.
Major financial institutions like BlackRock and UBS are already moving RWAs onto Ethereum-based platforms. For example, BlackRock operates a $578 million tokenized Treasury fund.
Tokenized Assets Projected to Grow Rapidly in 2025
Leon predicts that tokenized assets will grow rapidly in 2025, with ETH at the center of this expansion.
He notes that the global market for RWAs is estimated at $100 trillion, and while it will take time to fully tokenize these assets, the fees generated could exceed $100 billion annually.
This is a massive increase compared to Ethereum’s current year-to-date fees of $2.4 billion.
With Ethereum’s security, decentralization, and long-standing reputation, Leon sees it as a top choice for asset managers looking to move assets into blockchain platforms. “It’s difficult to overstate just how big the RWA market is,” Leon writes.
Leon believes clearer regulations, especially from a pro-crypto SEC, could speed up the tokenization of real-world assets. This would make Ethereum an even more attractive investment with significant potential.
He highlights tokenization as a major factor driving Ethereum’s growth. Combined with the rise of stablecoins and AI in crypto, Ethereum’s role in digitizing traditional assets could fuel its expansion in 2025.
ETH Price to $5,000?
According to LookonChain data, an ETH whale, likely tied to Longling Capital, has purchased 6,000 ETH amid Ethereum’s recent price dip.
Since May 2023, the whale has bought 75,400 ETH for $180.4 million and sold 50,800 ETH for $172.08 million in profit.
A smart whale (likely related to #LonglingCapital) bought 6,000 $ETH after the price drop.
This whale is skilled at buying $ETH at low prices and selling at highs, with a total profit of $83M.
Since May 8, 2023, this whale bought 75,400 $ETH($180.4M) at an average price of… pic.twitter.com/OK0OS9U4ou
— Lookonchain (@lookonchain) December 19, 2024
The latest move shows confidence in ETH’s growth. ETH is holding key support at $3,650, with a potential rally toward $5,000 if bullish momentum continues. Technical patterns suggest further price gains, aligning with the whale’s strategy.
