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Institutional interest rise and on-chain indicators suggest ETH long-term bullish
Gate News bot news, Bizantine Capital co-founder and managing partner Zheng is optimistic about ETH. He believes that due to the recent Pectra upgrade, Ethereum has better scalability than Solana, and with the inflation rate consistently lower than Bitcoin, Ethereum is able to maintain its position as a leading L1 blockchain.
Zheng stated: "Ethereum may be reaching a turning point, and these two leading advantages will continue to grow. It will be a very interesting year."
However, the growth potential of ETH this year also has some potential limitations. Polymarket users believe that the likelihood of ETH breaking its historical high of $4,868 on November 2021 is only 26%.
At the same time, analysis indicates that institutional investors' interest in Ethereum is sharply increasing, with exchange balances dropping to their lowest point in seven years. Investment products focused on ETH are also experiencing a significant inflow of funds, suggesting that institutional investors' long-term bullish outlook on Ethereum is strengthening.
Source: CoinDesk