ChainCatcher News: Garrett Jin, agent of the "BTC OG insider whale," posted that as AI applications become increasingly mature, AI-assisted trading will inevitably grow rapidly. Ethereum's smart contracts and Layer 2 solutions provide AI bots with a programmable, transparent, and secure execution environment, enabling automation in trading, customer interaction, and marketing. 1. This ecosystem is highly likely to be built on Ethereum. It will primarily be based on smart contracts, DeFi protocols, and decentralized AI agents. The integration of Ethereum's DeFi and AI ecosystems highlights ETH's high-tech and growth-oriented characteristics. 2. The convergence of these two ecosystems will inevitably drive higher demand for stablecoins. Increased stablecoin activity on Ethereum directly boosts ETH's valuation, similar to the relationship between oil and GDP growth. From a broader macroeconomic perspective, AI could drive a long-term deflationary cycle, significantly lowering global interest rates (well below 2-3%). In such an environment, ETH's 3% staking yield will increasingly be seen as an attractive fixed-income return, a factor not yet fully reflected in ETH's price. Once this characteristic becomes evident, more institutional capital may view ETH as a strategic reserve asset. Therefore, ETH's valuation framework combines the dual attributes of high dividend yield and high-tech growth: - The realization of its high dividend yield should coincide with reduced downside volatility. - The realization of its high-tech growth potential should coincide with increased upside volatility.
ETH Valuation Framework Combines High Dividend and High-Tech Growth Traits
ChaincatcherShare
Summary
The ETH price has climbed into the spotlight as Garrett Jin of "BTC OG 内幕巨鲸" highlighted Ethereum's role in AI-assisted trading. Smart contracts and Layer 2 technology provide a secure foundation for AI trading bots, driving DeFi and automated trading. This combination of high-tech growth and a 3% staking yield could attract institutional capital. Shifts in the fear and greed index may also support the ETH price as deflationary cycles take hold.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.