LD Capital sees long-term ETH growth from scalability and efficiency gains

Ethereum (ETH) is positioned for long-term growth based on solutions to its scalability challenges and its robust community and dApp ecosystem, according to a recent report from LD Capital. The report states that blockchain technology is driving change across various industries, with ETH leading the way through its smart contract and dApp ecosystem. It notes that the Merge, Ethereum's transition to Proof-of-Stake (PoS), significantly improved its scalability, security, and energy efficiency. While acknowledging challenges from competing platforms due to high fees, the report anticipates that the introduction of Layer 2 solutions like sharding will resolve these scalability issues. LD Capital founder Jack Yi added that there is a growing consensus on Wall Street for blockchain adoption and that the Fusaka upgrade for ETH is increasing the daily burn rate. He also pointed out that speculative leverage is at an all-time low and exchange reserves account for only 10% of the supply. Yi concluded that funds are flowing into ETH for its tangible value amid the current cycle of interest rate cuts.