## Global easing policies open new opportunities: ETH is ready for a leap beyond expectations

The crypto market has just experienced a strong wave of volatility following the event on 11/10. However, in the context of major economies gradually shifting towards easing monetary and fiscal policies, Ethereum is increasingly demonstrating its position as a tangible asset backed by an established economic foundation.

### Confirmation from the traditional financial world

Recently, SEC Chairman Paul Atkins made notable remarks in an interview with FOX. According to him, in the coming years, the US financial system may transition to blockchain technology. The main reasons include:

First is **asset tokenization transparency**. When assets are placed on the blockchain, ownership structures and related attributes become completely clear and verifiable. This creates a significant difference compared to current listed companies, where shareholder information is often not fully disclosed.

Second is **payment efficiency**. Blockchain enables same-day settlement (T+0), replacing the current T+1 cycle. On-chain delivery and payment mechanisms can significantly reduce systemic risks, as the delays between payment steps, clearing, and capital transfer are the root causes of many accumulated risks.

Third is **an inevitable industry trend**. Major banks and securities firms have already begun tokenization, which is expected to become widespread within a few years.

### Value chain from monetary policy to Ethereum

At the macro level, a legal chain connecting the US political-economic sphere and crypto has been formed. Wall Street and Washington have built a deep capital network, creating a new economic ellipse focus:

**Level 1 - Origin**: Monetary and fiscal policies from US leaders.

**Level 2 - Means**: US government bonds issued and managed by figures like Treasury Secretary Bessent, funds such as Tiger Cubs. These are the most profitable assets with low risk.

**Level 3 - Intermediary**: Stablecoins (USDT, USDC) mainly holding reserves in US government bonds and bank deposits. These management companies like Cantor become the nodes connecting traditional finance and crypto.

**Level 4 - Transformation**: RWA (Real World Asset) protocols on Ethereum L1 and L2 tokenize real assets such as bonds, mortgages, and receivables.

**Level 5 - Destination**: The final flow of funds settles on Ethereum and its L2s, creating value for ETH holders through transaction fees and liquidity circulation.

Current data shows that while RWA TVL on other public chains is decreasing after the 11/10 event, Ethereum remains the only blockchain maintaining attraction and growth. RWA TVL on Ethereum now reaches 12.4 billion USD, accounting for 64.5% of the total market.

### Fusaka upgrade: From consumption to value production

Ethereum’s Fusaka upgrade is not only technical but also a structural shift in the network’s economy. The key point of this upgrade lies in addressing the issue Ethereum has faced since the L2 boom: the growth rate of technology far exceeds L1’s capacity to absorb value.

Through **EIP-7918**, Ethereum establishes a "dynamic floor price" for blob base fee. Instead of allowing L2 to use bandwidth blobs at nearly zero cost, this upgrade forces Rollups to pay a minimum fee equivalent to 1/16 of the L1 base fee. This fee is burned, returning value to all ETH holders.

Ethereum’s upgrade history shows three "burn" phases:
- **London**: Burning only from the L1 execution layer
- **Dencun**: Burning both execution and blob layers, but blob part is unstable during low demand
- **Fusaka**: Linking blob base fee with L1, ensuring L2 activity is continuously reflected in ETH burning

Evidence from data: At 23:00 on 11/12, blob fees increased more than 5696 times compared to before Fusaka. A single day burned 1.527 ETH, with blob fees contributing 98% of total burns. As L2 activity surges, this upgrade will help ETH return to a deflationary state.

### Opportunities from the technical market side

On 11/10, all ETH futures leverage positions were liquidated. Traders with long positions were forced to close, while many long-term holders also decided to reduce their positions. According to Coinbase data, the speculative leverage ratio across the entire crypto market dropped to a historic low of 4%.

A notable detail: The traditional Long BTC/Short ETH trading strategy, which was very effective in bear markets, faced an unexpected turn this time. The ETH/BTC ratio has maintained resistance since November, not fluctuating as strongly as expected.

The amount of ETH on exchanges is currently around 13 million, only about 10% of the total supply—a historic low. When the Long BTC/Short ETH strategy becomes ineffective, in the context of extreme market panic, conditions for rebalancing positions (squeeze) are gradually forming.

### Macroeconomic scenario driving forces

Moving into 2025–2026, policy signals from both the US and China are positive. The US is expected to pursue an active policy: tax cuts, interest rate reductions, and easing crypto regulations. China will implement moderate easing, prioritizing financial stability to curb volatility.

In this region, with relatively loose expectations from the two superpowers, capital flow and market sentiment have not fully recovered. ETH is currently at a "golden bottom" position for building a stance, where the gap between risk and opportunity has gradually shifted favorably for long-term investors.