Good morning!
I'm thrilled to be back at work. During the holiday, two highlights stood out: First, I began migrating personal assets to a Safe multi-signature wallet (more on why it outperforms cold wallets for peace of mind in a future post). Second, I read Long-Term Buying by Professor Chou Guan-Nan of NCCU. While his skepticism toward Bitcoin was known, his insight — predicting short-term price swings is gambling; forecasting long-term trends is skill — perfectly segues into today’s topic.
Amid the DeepSeek frenzy that dampened the holidays, yesterday’s market crash saw ETH plummet by 30%. Over the past year, BTC surged 118%, while ETH crawled at 8%. Price-driven critics mock ETH as "obsolete." Here’s why they’re mistaken.
Trump’s Executive Order: A Game-Changer for Ethereum
On his first day in office, President Trump signed Strengthening American Leadership in Digital Financial Technology, a pivotal directive with three pillars:
- Protecting Rights: Safeguarding crypto mining and self-custody.
- Stablecoin Support: Halting CBDC development in favor of private stablecoins.
- Financial Equality: Ensuring crypto businesses access banking services without discrimination.
This order dismantled three years of regulatory uncertainty. Recall the SEC’s 2023 crackdown post-FTX, labeling most tokens as unregistered securities. The SEC fined Kraken $30M for ETH staking services, sparking fears ETH would be classified as a security — a threat now neutralized.
👉 Why Ethereum’s regulatory clarity matters for investors
Stablecoins also benefited. Previously, the U.S. waffled between encouraging stablecoins (extending dollar dominance) and developing CBDCs as backups. The new policy ends this ambiguity. With over 50% of stablecoins issued on Ethereum, the chain emerges as the prime beneficiary.
Banking bias? Corrected. Financial institutions often blacklist crypto-related flows, even within pro-blockchain conglomerates. Trump’s order mandates equal treatment, exposing deep-seated industry resistance.
For Ethereum, this was rain after drought — though some parched corners turned to infighting.
The Ethereum Foundation’s Overhaul
During the holidays, the Ethereum Foundation restructured to address three community grievances:
Token Sales Timing
- Dubbed "master sellers," the Foundation sold 20,000 ETH at $4,800 (near 2021’s peak).
- Regular sales fund operations, but downturns magnify discontent.
L2 "Vampire" Criticism
- Detractors argue Layer 2 solutions "bleed" Ethereum: Users once needed ETH for gas fees; now, L2s like Starknet use native tokens (e.g., STRK), sidelining ETH.
Leadership Credibility
- Questions surround Executive Director Aya Miyaguchi’s technical fluency and crypto-cultural fit.
FAQ
Q1: Is Ethereum really obsolete?
A1: Far from it. Regulatory tailwinds and L2 adoption signal growth, not decline.
Q2: Why did ETH underperform BTC?
A2: BTC’s status as "digital gold" overshadows ETH’s utility focus during risk-off periods.
Q3: How do stablecoins boost Ethereum?
A3: They drive transaction volume and demand for ETH-backed services.
👉 Explore Ethereum’s ecosystem potential
Conclusion
ETH’s "obsolete" label ignores its regulatory wins, stablecoin synergy, and scaling innovations. While internal challenges persist, the long-term outlook remains decidedly bullish.