Everyone in crypto seems to be asking the same question the last few days. What the hell is going on with Ethereum? Bitcoin hit an all-time high in January.
Meanwhile, Ethereum is down 20% in the last 2 weeks. Its 45% ROI in the last 12 months is pretty good, but nowhere close to Bitcoin’s 169% gains. Is Ethereum just another alt now? But then there are others thinking longer term that this is the quiet before some huge gains. Tron’s Justin Sun thinks ETH can get to 10k. Is he crazy? Can Ethereum get to 10k in this market? Let’s find out together.
Trump & His World Liberty Purchases
Why do people even think 10k is possible in this market given how poorly ETH is doing? Many longtime users and fans are frustrated like this one. Well, one reason is Donald Trump. His reentry into the White House is good news for the entire industry. By now, most of us are aware.
And WLFI, which is Trump’s DeFi project, is buying A TON of Ethereum. The project owns 63,000 ETH for a value of over $200 million. It’s by far, WLFI’s largest holding. wBTC is 2nd and then its staked ETH on Lido is 3rd at $62 million.
To celebrate #Trump‘s inauguration as the 47th President of the United States, @worldlibertyfi:
Spent $47M to buy 439 $WBTC
Spent $47M to buy 14,021 $ETH
Spent $4.7M to buy 19.3M $TRX
Spent $4.7M to buy 5.04M $ENA
Spent $4.7M to buy 177,928 $LINK
Spent $4.7M to buy 13,261 $AAVE… pic.twitter.com/l9SkbvMCkI— Lookonchain (@lookonchain) January 21, 2025
The bottom line is Trump is betting BIG on Ethereum. Yet, we still don’t know why and even Trump’s investment is in the red.
But one thing is for certain. Trump’s Ethereum purchases are a big signal that ETH and DeFi are open for business with this President. He’s not going to pass legislation making it harder for his project to make money. That’s for sure.
Justin Sun’s ETH to 10k plan realistic?
Tron founder, part custodian of wBTC, and overall controversial figure Justin Sun had a lot to say about what Ethereum could improve upon. Despite having his chain with Tron, Sun has a lot invested in DeFi including a new $45 million investment directly into Trump’s WLFI project.
We are thrilled to invest $30 million in World Liberty Financial @worldlibertyfi as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation. Let’s go! pic.twitter.com/cISTsVYP1f
— H.E. Justin Sun (@justinsuntron) November 25, 2024
And we know WLFI holds A LOT of ETH. So here’s what Sun would do to get Ethereum to 10k:
- Halt all ETH Sales by the ETH Foundation: This is a position that sounds controversial but shouldn’t be. The EF has been dumping on retail for years to fund its operations. Instead of borrowing against or using staking income, they are just selling.
- Tax and Burn baby Burn: Sun says ETH should be taxing its L2s more for the inherited security and other features the L2s use. Even those of you who have seen this plan may not have noticed something. Sun recommends taking the L2 taxes that Ethereum collects to buy back ETH and burn them.
Remember the big stink 2 years ago about ETH having a burn program with its new fee structure? That was EIP-1559 if you may remember? Remember all the stupid posts like these? It was a pipe dream.
EIP-1559 is huge for ethereum and coming in July
EIP-1559
– launches in July with the “London” hard fork
– delivers important benefits to all ethereum users
– would have burned ~$14M in ETH yesterdayHere’s a chart showing how EIP-1559 (and proof of stake) accrue value to ETH pic.twitter.com/ptf9ihIOpR
— Ryan Berckmans ryanb.eth (@ryanberckmans) March 9, 2021
The burn amounts on ETH are now very small. This proposal by Sun would probably bring back the “ultrasound money” meme again for Ethereans. Cause they sure seem quiet about it now:
- The 3rd point in Sun’s plan is a big realignment and layoffs at the Ethereum Foundation. He is among many who believe the EF has gotten too big and too far away from its goals and the community it serves. Not much controversy about that.
- More on burns to make Ethereum truly deflationary. Sun wants to reduce rewards for nodes and increase the burn rate.
Sun feels these 4 things are essential to get Ethereum back on track and move it to $10,000.
If EF and Ethereum Were Under My Leadership
“#ETH to $10,000”
My First Week Plan
1. Halt ETH Sales immediately and Optimize Revenue
EF will immediately cease selling ETH for at least three years. Operational costs will be covered through AAVE lending, staking yields, and…
— H.E. Justin Sun (@justinsuntron) January 22, 2025
What do you think about this plan? Do you think it’s realistic? Do you think ETH could get to 10k if it does these things? Let us know by commenting on us on X.
Other Technical and Fundamental Indicators
When it comes to other technical or fundamental indicators of how healthy Ethereum is, one of the best ones to look at is ETF inflows. And you can see here they are VERY healthy at 18,000 ETH or almost 60 million dollars in one day and $300 million in the last week.
Jan 22 Update:
10 #Bitcoin ETFs
NetFlow: +6,719 $BTC(+$700.94M)#BlackRock(iShares) inflows 6,208 $BTC($647.67M) and currently holds 569,343 $BTC($59.4B).9 #Ethereum ETFs
NetFlow: +18,108 $ETH(+$59.59M)#BlackRock(iShares) inflows 16,959 $ETH($55.81M) and currently holds… pic.twitter.com/I2EAn9iABF— Lookonchain (@lookonchain) January 22, 2025
So if ETH is flat to down, there has to be some reason. After all, if there is $300 million of buying just in the ETFs last week, then there must be that much or more in sellers for the price not to rise. Are exchanges and market makers keeping prices down? That’s one theory.
Liquidation Levels 6:30pm Jan 29th
MM Update: #Binance sends $SOL and $ETH to #Wintermute to flush 50% of the Jerome pump. They want those red lines. pic.twitter.com/kjZrb4cEIL
— MartyParty (@martypartymusic) January 29, 2025
On the positive end, it’s not just ETF inflows either. Institutions WANT to use Ethereum specifically and ETH DeFi protocols. The demand seems like it’s there. Ethereum has a lot of negative sentiment to go through before it can start growing again. Can it grow again? Definitely. Will it be this cycle? We don’t know. We’ve presented a few bullish reasons to believe it. That said, ETH has not reacted the way we would expect.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. The post Is Ethereum (ETH) going to $10k in 2025? appeared first on Altcoin Buzz. This articles is written by : Nermeen Nabil Khear Abdelmalak All rights reserved to : USAGOLDMIES . www.usagoldmines.com You can Enjoy surfing our website categories and read more content in many fields you may like . Why USAGoldMines ? USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.Disclaimer
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