Gate Ventures: The market continues to underestimate, while Ethereum L1 scaling and institutional DeFi momentum are synchronously strengthening.

According to news from CoinWorld, the latest cryptocurrency weekly report released by Gate Ventures states that 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 such as ETH and SOL remains significantly underestimated; market sentiment and linear thinking obscure their true growth potential. Currently, the overall market sentiment remains weak, 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 ecosystem dynamics, Ethereum has raised the block Gas Limit to 60 million in preparation for the Fusaka upgrade, marking the largest expansion of the execution layer in nearly four years. Paxos has acquired Fordefi for over $100 million to strengthen its institutional custody services. Meanwhile, DWF Labs has launched a $75 million fund focused on building institutional-level DeFi infrastructure. In terms of financing, the total amount disclosed last week was $164 million, a decrease of 88% compared to the previous period due to tightening market conditions. Infrastructure projects accounted for 62% of total financing, while DeFi recorded the highest financing scale.