According to analysts at CoinShares, professional investors are showing increasing interest in Ethereum due to its unique capabilities in deploying decentralized applications (dapps). However, the investment potential of the asset remains in question, as it largely depends on organic demand for transactions on the network.

Ethereum’s on-chain activity is concentrated in several key areas, such as decentralized exchanges (DEX), stablecoins, and Layer 2 (L2) solutions. These areas represent speculative use cases that play a significant role in supporting current demand but create uncertainty in the long term.

Risk Factors and Prospects

Analysts emphasize that for sustainable growth, Ethereum needs to expand its use cases and user base beyond speculation. A key factor will be the development of the dapp ecosystem and the attraction of new participants, which could enhance stability and predictability of returns for investors. Despite the current challenges, Ethereum continues to be one of the most innovative projects capable of transforming financial markets and industries.

For more information, visit CoinShares.