Gate Ventures: The market continues to underestimate, with Ethereum L1 expansion and institutional DeFi momentum enhancing synchronously.

Odaily News According to the latest cryptocurrency weekly report released by Gate Ventures, directly applying traditional short-term valuation models (such as short-term price-to-earnings ratios and revenue models) to blockchain networks can lead to systemic pricing errors. Due to the exponential characteristics of the adoption curve in the cryptocurrency industry, the long-term growth potential of assets like ETH and SOL remains significantly underestimated; market sentiment and linear thinking obscure their true growth potential. Currently, overall market sentiment remains fragile, with BTC rising 4.07% and ETH rising 6.82% last week, while the fear and greed index remains in the “extreme fear” range. In terms of ecological dynamics, Ethereum raised the block Gas Limit to 60 million in preparation for the Fusaka upgrade, marking the largest execution layer expansion in Ethereum in nearly four years. Paxos acquired Fordefi for over $100 million to strengthen its institutional custody services. Meanwhile, DWF Labs launched a $75 million fund focused on building institutional-grade DeFi infrastructure. In terms of financing, the total amount of publicly disclosed financing last week was $164 million, which decreased by 88% month-on-month due to market tightening. Infrastructure projects accounted for 62% of total financing, while DeFi recorded the highest financing scale.