Recently, the market has undergone significant adjustments due to PPI data, triggering panic among many investors, and even some have chosen to close all positions. However, rational investment decisions should be based on changes in the fundamentals rather than short-term fluctuations. As long as the underlying logic remains unchanged, the temporary unfavourable information usually dissipates in the short term.

Let us delve into the core driving force behind Ethereum's (ETH) recent surge. ETH has successfully transitioned from the traditional public chain concept to the infrastructure of the Web3 financial ecosystem, and is viewed by Wall Street investment institutions as an important reserve asset. This shift in positioning stems from its outstanding level of decentralization.

Since the competition for public chains began in 2021, ETH has consistently ranked first in market capitalization among public chains. However, if evaluated solely from the perspective of public chains, ETH's performance seems rather disappointing. Over the past two years, its staking rewards have not significantly improved, and the trading gas fees remain high, causing some well-known projects to choose to leave. In addition, ETH also failed to participate in last year's popular meme coin frenzy. Compared to emerging public chains like Solana, ETH's performance does seem relatively inferior in certain aspects.

However, the true value of ETH lies in its status as the most widely recognized and financially settled crypto asset. This unique positioning allows it to transcend the traditional public chain category, becoming the cornerstone of the entire Web3 financial ecosystem. The preference of Wall Street institutions for ETH is precisely based on its core position and potential in the decentralized finance sector.

Despite the short-term market fluctuations that may trigger panic, investors should focus on the long-term development trends and fundamental changes of ETH. The transition of ETH from a public chain competitor to a Web3 financial infrastructure indicates that it may have broader development space in the future. When evaluating the investment value of ETH, we need to break out of the traditional public chain thinking framework and recognize its key role in the entire crypto financial ecosystem.