Bitwise: Driven by institutional interest and the growth of RWA tokenization, Ethereum will recover in 2025

Bitwise Senior Investment Strategist Juan Leon stated in a letter shared with investors that ETH is expected to recover by 2025, leveraging the $100 trillion opportunity brought about by RWA tokenization. He emphasized two characteristics of this year's cryptocurrency market: BTC hitting a historical high and the Meme coin craze driving SOL up. Therefore, compared to BTC's 130% increase and SOL's 106% increase, ETH's return rate of 66% so far this year pales in comparison.

However, recent signs indicate that market sentiment is reversing. In the past ten days, Ethereum ETFs have attracted a net inflow of $2 billion, eight times the net inflow of $250 million in the previous four months. Moreover, only three trading days out of the last ten had an Ethereum ETF daily inflow below triple digits. This surge indicates renewed interest in Ethereum from institutional and retail investors.

In addition, RWA tokenization could be a catalyst for Ethereum’s revival with its global value estimated at around $100 trillion. While most of this market may take decades to shift towards blockchain trajectory, Leon sees huge potential upside space. Considering that Ethereum occupies 81% share of RWA market , Leon estimates that fees generated on Ethereum related to RWA activities could eventually exceed $100 billion annually - more than forty times its network fee so far this year which stands at $2.4 billion.