Gate Ventures: Market undervaluation persists, Ethereum L1 scaling and institutional DeFi potential are simultaneously enhanced

According to the latest crypto weekly report released by Gate Ventures, directly applying traditional short-term valuation models (such as short-term price-to-earnings and revenue models) to blockchain networks can lead to systemic pricing errors.

Due to the exponential characteristics of curves adopted by the crypto industry, the long-term growth potential of assets like ETH and SOL is still significantly underestimated; market sentiment and linear thinking obscure their true growth potential. Currently, 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 execution layer expansion for Ethereum 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-grade DeFi infrastructure.

In terms of financing, the total amount disclosed last week was $164 million, which represents an 88% decrease compared to the previous period due to tightening market conditions. Infrastructure projects accounted for 62% of all financing, while DeFi recorded the highest financing scale.