PANews reported on January 1 that Nick Tomaino, founder of 1confirmation, tweeted, "I am posting a bullish post on ETH because I care about the truth, no matter what people on platform X say. ETH will reach over $10,000 anyway." The reasons for being bullish on Ethereum are:
- The best crypto developers are still developing on Ethereum, just as they have been for the past seven+ years.
- Preemptively deploying new use cases creates powerful, defensible network effects. Once a new use case succeeds on Ethereum, other chains will copy it. Take NFTs and stablecoins as examples, although Ethereum’s dominance in these two use cases is undeniable.
- On-chain usage drives value for ETH holders because ETH has an excellent monetary policy. Transaction fees are burned, so as usage increases, if ETH burns more than staking rewards, supply will decrease. Bitcoin has a simple digital gold narrative that institutions have agreed on: 21 million in 2140. Ethereum's scarcity narrative is not simple on the surface, but is just as powerful.
- The distribution of ETH as a currency is now happening both at the institutional and local levels. Inflows into ETH ETFs were strong in the last five months of 2024, but are expected to accelerate in 2025 as Wall Street's understanding of ETH deepens and ETFs begin to stake. At the same time, the growth of applications on L2 and the upcoming L3 will accelerate the local adoption of ETH as a currency.
