Gate Ventures: Market undervaluation persists, Ethereum L1 scaling and institutional DeFi momentum are simultaneously strengthening.

According to Gate Ventures' latest crypto weekly report, applying traditional short-term valuation models (such as short-term price-to-earnings ratios and revenue models) directly to blockchain networks can lead to systemic pricing errors. Because the crypto industry employs curves with exponential growth characteristics, the long-term growth potential of assets like ETH and SOL remains significantly underestimated; market sentiment and linear thinking mask their true growth potential. Currently, overall market sentiment remains fragile; last week, BTC rose 4.07%, ETH rose 6.82%, and the Fear & Greed Index remains in the "extreme fear" range.

In terms of ecosystem dynamics, Ethereum increased its block gas limit to 60 million in preparation for the Fusaka upgrade, marking the largest execution layer scaling for Ethereum in nearly four years. Paxos acquired Fordefi for over $100 million to strengthen its institutional custody services. Meanwhile, DWF Labs launched a $75 million fund focused on developing institutional-grade DeFi infrastructure.

In terms of funding, the total amount of funding disclosed last week was $164 million, a decrease of 88% compared to the previous week due to market tightening. Infrastructure projects accounted for 62% of all funding, while DeFi recorded the largest funding volume.