Ethereum (ETH) is facing challenges in establishing itself as a 'store of value' asset, which is hindering its potential for a price rally. Cryptocurrency researcher Ignas (@DefiIgnas) pointed out that without the 'SoV premium,' Ethereum lacks strong catalysts for significant price movement. While narratives like RWA tokenization and stablecoins are emerging, they may favor blockchains with faster and cheaper transactions over Ethereum.
Despite these challenges, Ethereum's native yield mechanisms and its robust DeFi ecosystem remain significant strengths. To regain its deflationary status, Ethereum needs to increase its burn rate to counteract the current 0.16% annual supply growth, according to Ignas.
Ethereum's Store of Value Struggles Limit Price Growth
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