In the performance of the cryptocurrency market over the past year, Ethereum appears to be outperformed by Bitcoin and Other public chain coins, including Solana and Sui. The latest data shows that Sui leads with an astonishing increase of 434.1%, while Solana has also realized a growth of 84.2%, significantly surpassing ETH, which has left supporters and Holders of Ethereum feeling relatively sluggish recently.

After Trump took office, it may bring Bullish policies, injecting new growth momentum for ETH.

A shift in the regulatory environment revitalizes legitimate cryptocurrency projects.

Trump announced that his nominee, former SEC Commissioner Paul Atkins, will serve as the next SEC chair. This change could completely alter the regulatory environment, as the SEC, previously led by Gary Gensler, took a tough stance on DeFi projects, including investigations into major projects like Uniswap, restricting the development of the Ethereum ecosystem.

In addition, the new government may gradually phase out the past theory that "VC coins are worthless," as under the previous regulatory environment, many venture capital institutions' investments in Infrastructure and innovative projects were often overlooked, while the market was once enthusiastic about speculating on meme coins and other non-utility assets.

Trump's cryptocurrency-friendly stance and possibly more amicable SEC policies will change this phenomenon, as legitimate projects will no longer need to worry about receiving consecutive Wells notices from the SEC, but rather will receive more support from regulatory agencies.

Staking yield ETFs may become a new engine for inflow into Ethereum.

On the other hand, under Trump's new government, the SEC may approve more ETF applications related to Ethereum, particularly ETFs that allow for staking yield features. This move could not only bring higher inflows to Ethereum but also enhance its attractiveness as an asset, with staking rewards potentially rising to 4%-5%. In the context of the Federal Reserve cutting interest rates, such yields will be more appealing to institutional investors.

Trump family invests with soft endorsement.

Additionally, the decentralized finance project "World Liberty Financial" launched by the Trump family has already invested a significant amount of capital within the Ethereum ecosystem, purchasing core assets such as ETH, ChainLink, and Aave, ONDO. This action is not only one of the biggest "soft" endorsements for the Ethereum ecosystem but will also stimulate more capital to focus on the future development of this blockchain network.

AI intelligentsia, a series of important network upgrades, and improvements in the regulatory environment in the USA are all reasons to be optimistic about Ethereum in 2025.

As of now, ETH (Ether) has accumulated a rise of 53.5% this year, increasing from $2,350 on January 1st to the current $3,400.

The longer it is pressed down, the stronger the rebound will be.

Ethereum will welcome the Pectra upgrade in 2025.

One of the eagerly anticipated major upgrades is the Pectra upgrade — the next significant milestone on the Ethereum roadmap, expected to launch in early 2025. The Pectra upgrade will fundamentally change the way the Ethereum security layer operates.

Currently, Ethereum staking mainly relies on liquidity. Essentially, many ETH holders want to participate in staking. This is usually a good thing, as more nodes mean more decentralization and higher security.

However, Ethereum has now reached an enormous scale — communication among over 1 million Ethereum validators — which has begun to slow down the network's speed.

Pectra addresses this issue by increasing the maximum effective balance of validators from 32 ETH to 2,048 ETH, thereby significantly reducing the required number of validators and alleviating the pressure on the network.

Reduced pressure means a faster network, and the experience for Ethereum users will also improve.

This will make staking cheaper, leading to more people participating in staking and consequently lowering staking rewards over time. For this reason, there is a very bullish attitude towards restaking. Many people will want to enhance their staking rewards by securing other networks.

In the past two weeks, Ethereum ETF net inflow reached 1.5 billion USD, becoming one of the periods with the highest inflow among the eight spot funds.

Moreover, the Ethereum spot ETF accumulated net inflow exceeded 2.1 billion USD in December, setting a new record, nearly double the inflow funds of November.

There is an Inflow of funds, but the prices have not increased significantly. Once the upward trend begins, the potential is unimaginable.